“Trading can be an emotional roller-coaster, but trading or investing Apple stock goes beyond emotional and enters into the realm of psychotic,” Ernie Varitimos writes for TheStreet. “Fortunately the selling appears to have subsided, and Apple may have found a bottom at $390; currently, it’s trading about $20 above that low.”

“This kind of volatility drives traders and investors mad trying to guess which way the stock will go next,” Varitimos writes. “Should they wait, add more, protect gains, get in, get out? There are countless permabull retail traders (little guys) that have been dumbfounded. Many bailed when it got below $400 because they couldn’t take it any longer. Now, they’re kicking themselves as Apple rebounds.”

“But it’s not Cook’s fault. It was really the result of index funds being overloaded with Apple shares, and they rode it all the way to the top, making huge profits. Then some of the bigger funds, along with a swath of insiders, decided to take profits, which is natural, but it manifested into a slippery slope, which caused a cascade of funds to divest, and they kept on divesting,” Varitimos writes. “This was exacerbated by a confluence of things that mainly resulted in confusion and fear. Analysts smelled the fear, and so they jumped into action and used their superior intellect to explain to investors what was happening. And because they are analysts — hapless, glorified reporters — they mostly got it wrong, which did nothing but add to the fear, uncertainty and doubt (FUD). At the same time, also sensing an opportunity, Samsung jumped into action with a massive Apple smear campaign, which helped them sell a lot of cheap Galaxy phones and ‘phablets.'”

Read more in the full article here.

[Thanks to MacDailyNews Reader "Tamir C." for the heads up.]

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