Jason Schwarz: Apple’s tax-induced selloff is over

“The technical test of resistance for Apple happened early Tuesday morning at the $570 level,” Jason Schwarz writes for TheStreet.

“As Apple was trading in complete contradiction to the market over the past five trading sessions, it was obvious that something was happening beneath the surface,” Schwarz writes. “The most likely reason [for the selloff] is that broad-based income tax selling has grown to an all-time high this year.”

Schwarz writes, “How many investors have been forced to sell Apple in the last week in order to pay taxes? As Apple evolves into its own asset class, macro variables such as the April 15 income tax deadline will influence the stock in new ways. Last year, Apple dropped 9.6% from $351 on April 1 to a low of $320 the Monday after the 15th. This year, Apple dropped 12% from $644 on April 10 to $571 on April 17. This is definitely something we should watch out for next year.”

Read more in the full article here.


    1. … I’ll make a point of selling (at least SOME of) my (wife’s) stock on or about the 1st April. The stock will have gone long-term by then, lowering our tax liability, and we’ll have a chance to either boost our ownership or (more likely) use some of the profits to a) pay our taxes and b) buy ourselves a gift. W00T!

  1. I thought of selling some AAPL stock to pay my taxes, but I figured it would be cheaper to borrow the money at 6% interest and earn a higher % back as AAPL continues to increase.

    Besides, the reason I got into the tax mess was because of capital gains from my last AAPL sale. Doh!

  2. FUD- this is why we use tax extensions. This was pure profit taking. Big investors sold off for the AAPL slingshot. This has nothing to do with individual investors. It has more to do with April 24th than April 15!

  3. jesus.. you people realize a tax filing extension still means you have to pay and due taxes by today or you’ll incur a penalty, right? So anyone who knew wtf they were doing and owed money- sold their shares to cover it by today. F sake.

  4. Yeah I know about penalties and interst and they are cheaper than selling stock that’s on fire and offers a new per share dividend, unless you have 10 shares for f’s sake. These wern’t small share sell offs it was a 70 point drop in 5 days of a 640 plus dollar stock. This was market manipulation seen over and over again, year after year!

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