Can the Apple slingshot halt the selloff?

16 years ago

“We are seeing the Apple (AAPL) slingshot attempting to halt the selloff,” Jason Schwarz writes for TheStreet. “Early in the day, Apple was up $3 and as the Dow sold off 130 points, Apple remained in positive territory and finished the day up $6.60. Can the Apple slingshot do it again? Will the market leave its worries behind and use Black Friday as a positive catalyst? According to recent history, the outcome of this week’s action will determine the next three months of returns.”

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“If Apple can reaffirm its slingshot ability, it will most likely follow the 2007 path that witnessed a November 19 low of $163 followed by a rise to $182 by November 30 and $198 by December 31,” Schwarz writes. “November 19, 2007 was the Monday of Thanksgiving week, Tuesday saw Apple rise $5, Wednesday, Apple was flat, Friday Apple was up $3.50 and then a run with only 2 down days brought Apple to $195 by December 10.”

“In 2007, it was wise to buy the November low, which is why we added Apple LEAPS to our portfolio last week with Apple hovering near $300,” Schwarz writes. “Catalysts such as iPad, Verizon (VZ_) iPhone, China, MacBook Air, Mac App Store, and even Apple TV give Apple stock solid reasons to repeat the 2007 performance.”

Schwarz writes, “But what if the market is too stubborn to rise and the Apple slingshot fails this week?”