“It seems there is very little that can stop Apple. Less than 2 weeks ago, when Apple shares suffered a technically bearish ‘key reversal day,’ many analysts, investors and traders sounded the warning alarms, claiming that Apple has established its 2/15/2012 intraday high price of $526.29, and will continue trading lower in the near future,” Bachar Samawi writes for Seeking Alpha.
“We actually dismissed such predictions in our article of 2/21/2012, ‘3 Indications Apple Shares Haven’t peaked Yet,” Samawi writes. “We provided many factors supportive of additional gains in Apple shares, including the prevailing interest rate environment where the Federal Reserve has maintained near zero interest rates and has indicated it would continue to do so through 2014.”
Samawi writes, “On 2/29/2012, as Apple was establishing its most recent record intraday high of $547.61, U.S. Federal Reserve Bank chairman Ben Bernanke, in a testimony to lawmakers in Washington, dampened the prospects for additional monetary easing. Stock markets immediately started retreating. Apple shares initially maintained their gains, but at around 3:15 P.M., they came under tremendous selling pressure, dropping as low as $535.86 by 3:37 P.M. before bouncing to close at $542.44.”
“Although Apple shares continue to look quite impressive, investors need to beware Mr. Bernanke for 3 good reasons, as was evident on an intraday basis on 2/29/2012,” Samawi writes. “Naturally, such warning is not about Apple on its own, but a risk to the entire market, as it would be challenging for Apple to avoid a market wide sell-off.”
3 reasons for Apple investors to beware Bernanke:
1. Effect of No Monetary Easing
2. Effect of Possible Higher Interest Rates
3. Effect of Market Volatility
All three points are detailed in the full article here.
[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]