“Contrarian trader Steve Cortes on Thursday said that he’s ready to jump back into Apple — by shorting it,” Bruno J. Navarro reports for CNBC. “‘I haven’t touched Apple in three months, but I think it’s time to get back in on the short side,’ he said on ‘Fast Money.’ ‘The main reason: When I look at charts, I look at Google from late 2007, in late November 2007, and overlay Apple, present tense, over that chart it looks incredibly similar.'”
“Google’s chart from that period showed a trend that Apple appeared to be following, in which the stock ‘seems like it’s unassailable, and then we see a parabolic move,’ he said,” Navarro reports. “Cortes said he was looking for Apple to hit $600 — ‘I sold it at $595 and I do think that it’s time to come back to Earth.'”
Navarro reports, “Cortes clarified that he had no problem with Apple’s fundamentals or valuation. ‘I do have tremendous qualms with the technical picture of Apple right now,’ he said, adding, ‘I made a lot of money being short Apple in September and October.’ Apple bull Tony [sic] Sacconaghi of Sanford Bernstein agreed that Apple’s past periods of outperformance came within six-week spans. ‘“The rest of the time, there have been periods of flat and underperformance,’ he said. Sacconaghi said Apple was nothing like Google in the past, trading at a much lower multiple, showing strong cash flow and more than $100 per share on its balance sheet.”
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MacDailyNews Take: Sheesh, Toni’s making sense. That makes us wonder whether we’ve had too much beer already or if the apocalyse is uopn us or something.