“One bearish chart for Apple Inc.’s stock doesn’t a bear market make… but how about four scary-looking charts?” Tomi Kilgore reports for MarketWatch.
“First is an impending bearish ‘death cross’ pattern, in which the 50-day moving average crosses below the 200-day moving average. This pattern is seen by many as marking the spot that a shorter-term decline graduates into a longer-term downtrend,” Kilgore reports. “While the validity of the ‘death cross’ has been widely debated, the last time one appeared, just as the stock was pulling back from record highs, the stock fell another 27% in four months.”
“Based on the current trajectories of Apple’s 50-day and 200-day moving averages, a ‘death cross’ should be confirmed in a little over a week, or at least by the end of the mont,” Kilgore reports. “Adam Sarhan, CEO of financial advisory firm Sarhan Capital, said he turned bearish on Apple’s stock earlier this month, after being bullish for about 1 1/2 years, because it broke below key support, including the 200-day moving average. ‘When you see a major break in a stock like Apple, that means the big institutions are selling, not buying the stock,’ Sarhan said in a phone interview with MarketWatch. ‘We saw this in 2012.'”
More AAPL chart soothsaying here.
MacDailyNews Take: Heartening.
[Thanks to MacDailyNews Reader “eldernorm” for the heads up.]
As a Russian friend of mine used to quip: “Boolsheet”.
“Heartening” – and unfortunately true – I’ve been a long time Apple bull and shareholder – but have been selling stock lately because record quarters and earning do not seem to matter anymore with this stock – and regardless of my love for the products, I need for my investments to grow – I’ve never seen a stock get so penalized and punished for every little issue and not rewarded for stellar performances quarter after quarter.
You are a smart investor. Rather than bitch and moan and complain about AAPL being treated so unfairly on Wall Street, you simply sold it and made a profit. And that’s what it’s all about.That doesn’t stop you from being a fan and consumer of all great things that Apple produces. But it does keep you out of the camp of chronic bitching clueless investors. Kudos to you.
Boris Badenov? Kill Moose- Not Squirrel.
Must’ve boiled a couple of frogs and a rattlesnake then drunk it to come with “death cross”
the so called AAPL “death cross” is simply a HAM correction on a BACN trajectory that has factored in BUN.
nothing new to see here…
“Be fearful when others are greedy and greedy when others are fearful.”
– Warren Buffett
From the article:
‘death cross’ pattern, in which the 50-day moving average crosses below the 200-day moving average.
Technically it should read:
‘death cross’ pattern, in which the 50-day moving average crosses below the 200-day moving average where the 50-day and the 200-day averages are both going lower at the same time.
Not that it matters in this case because both appear to be headed lower at the same time.
Some good news – Maybe! 🙂
It is interesting to note that the bearish “death cross” occurred before Apple initiated its buyback program. The upturn and the bullish “golden cross” occurred in the second half of 2013 which corresponds to a $21 Billion buyback of stock that occurred in the same second half of 2013. The stock really took off in 2014 when Apple bought back $47 Billion worth of stock.
How much can the current buyback program deter the 27% decrease that occurred before, I don’t know but it should have some positive effect on the stock price. We shall see.
Buyback spreadsheet:
http://appleinsider.com/articles/14/10/21/apple-inc-surprises-with-massive-17-billion-q4-stock-buyback
Graph in the article:
http://www.marketwatch.com/story/a-death-cross-in-apples-stock-is-coming-2015-08-19
Historically, Death Cross usually marks a Bottom. Bring it on…
If anyone is stupid enough to believe in technical analysis, and base their investment decisions on it, I pity them. It’s voodoo.
Death crosses and teacup handles. Yes, because that’s SO logical and such a brilliant way to separate yourself from your retirement money. May God have mercy on us all.
I’m a little teapot short and stout. Here is my handle and here is my spout. My drooping spout indicates Apple is about to drop further. It certainly makes complete sense to me.
And if all analysts were drowned in a mud puddle there would be less foolish charts.
How about four scary-looking charts?
But wait, their more! Four scary-looking charts, and Reversy!
. . . except in Nebraska.
I have been keeping a not inconsiderable amount of cash on hand in the hopes of a large drop in Apple share price. I would love to get a bargain a 20% drop in price would represent.
More evidence that Wall Street runs far more on emotion, relying far more on sooth sayer level predictions than any kind of real world analysis of financial fundamentals. Bizarre that a very few can play the FUD of the majority and milk them of their money so consistently. Even more bizarre that this is legal.
But then again, political campaigns seem to also ran far more on FUD than on any kind of logical selection of the best candidates. And, arguably, the same players who manipulate Wall Street are also manipulating our elections using similar FUD manipulating tools tied to the media.
http://dilbert.com/strip/2015-02-23
Enough said.
Where’s the voodoo doll and crystal ball? What a bunch of B.S.!!!!
More evidence that Tim “Apple Ballmer” Cook is driving Apple into the ground. This buffoon needs to find a new job and take his side kick Ive with him.
Voodoo analysis bull.
Past performance is no guarantee of …. Pretty much anything.
Maybe they should seperate their divisions into business units and create a parent company called Romper Room.
HAHAHAHA!
Do Be An Apple Realist! 🎶
Don’t Be An Apple Bear Bullshitter! ♪
. . .
From a new investor’s standpoint (I’m a long-term investor) I’d think Apple is the stock not to own when there are so many other stocks giving back far better returns than Apple. Apple is the only investor buying Apple. Some people say that’s a good thing but I don’t see it being the case. To me it seems like Apple is actually paying for a loss in stock value. The more stock Apple repurchases, the less value the stock has which simply seems stupid to me. Please understand that I don’t understand the stock market that well, so my judgment may be quite wrong. I would think Apple is smarter than that and knows exactly what they’re doing whether I understand it or not.
I can’t possibly understand why everything Apple does disappoints investors. If the products are good, why should investors be unhappy. I don’t think every product or service a company attempts has to be a huge sales hit. Is something like that even possible for most companies? I don’t think any company can guarantee everything they produce to be a winning product. If it were that easy, everyone would be doing it. I’d think a company was doing quite well just to always keep the accounting books well into the black. Wall Street should never influence how a company is being run. I can only hope Apple knows what it is doing to stay ahead in the future.
The shorts are pulling their media scam again. Shame on Macworld for going along.
BWAHAHAHAHA! Incredibly desperate AAPL manipulation. 😛 Here we go again with the Apple Bear Bullshitters. Always a great clown show. 😘💋💋💕💕💕
Oh and if you ever wonder why Apple keeps a stockpile of liquid assets around, it’s for bullshit periods like this. And of course in case another Marketing-As-Management horror occurs. (Think John Sculley era).