“Just as Apple reached its lowest point in almost seven months, the stock bounced back Tuesday,” Michelle Fox reports for CNBC. “If the stock has been struggling for so long, why are the shares rallying now?”
“According to [Jim] Cramer, it’s more than just the rumor about Apple’s iPhone 5 possibly coming out in August,” Fox reports. “‘When we see stocks bounce that’s usually because the people who have been playing the trend recognize that there are some buyers at a certain level,’ he said, ‘and then the trend followers who have been shorting… realize they have to cover.'”
Fox reports, “But just because there is a bounce today doesn’t necessarily mean the stock is heading higher long term, the “Mad Money” host cautioned. ‘One of the things that we kind of forget: stocks don’t go down in a straight line,’ he said. ‘The velocity of the Apple sell-off would take Apple to $200 in August. That’s not what happens, that’s not the way stocks trade.'”
Full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]