Apple stock: One indicator is flashing a clear buy signal

“Welcome to Apple (AAPL) hell,” Stephen Rosenman writes for Seeking Alpha. “The stock has gotten pummeled, dropping over 100 points since its April $644 high. Awful and painful, but nothing new as I’ve explained before. Apple pain happens every year.”

“Sometimes the stock gets mired in a hopeless malaise. Sometimes it craters. It’s always brutal either on a point basis or a time basis or both. It can last two months or nine,” Rosenman writes. “It happens every year. Different reasons, same miserable tape. Everyone remembers Apple’s fabulous climbs and everyone knows about this recent share price collapse, but very few recall the annual bruising Apple takes each year on a regular basis.”

Rosenman writes, “Witness the 2005 stellar Apple run from $35 to $85 in 8 months, followed by a 6 month 42% decline. That decline followed a sensational quarter. Yet, the market believed Apple had nothing left to offer the consumer. Apple was caput, relegated to the dustbin… And yet, you’ve got to look on the bright side. Every time, the market has written Apple off (and it happens every friggin’ year), the stock silences its bears with outrageous gains… For what it’s worth, the market gave Apple investors a momentous buy signal: The Relative Strength Index (RSI) for the stock dropped to 30. Last year, that was the biggest Apple trading event of the year: It marked the very bottom for the stock. Apple rose 35% over the next 4 months.”

Read more in the full article here.

18 Comments

  1. Apple is not bullet proof.
    But by nature outsourcing and play the global game of monopoly and power, believing that its all going to be fine so long the shareholder believe and the stock is doing well…
    play the gambling game and see where it leads.
    Russia? Work and outsource to Russia and make a location there like Silicon Valley… God no.
    No Apple – bring in the great minds and people talented to seek out vulnerabilities in OSX and pay them to live in the US as are most of the other staff at Apple. Wrong…
    If interested in starting up I THINK INVESTORS need to think differently too. PULL OUT FAST.

    1. Is English your first language? Or is your appalling grammar a clear indication of just how incredibly stupid you actually are. Or very poorly educated.
      Either way, you know diddly.

  2. Well, many investors might have heavily sold Apple to invest heavily in Facebook. As of today, that really didn’t pay off, so hopefully many will have second thoughts and reinvest in Apple.

  3. I think investors should think LONG when it comes to Apple. Why worry about the possibility of consumer electronics R&D in Russia when the US has joint aerospace operations to the International Space Station? Apple fabricates in China and Brazil and parts manufactures in Korea, Japan, etc. Keep your friends close and your enemies closer?

  4. AAPL: 530.38

    Only another $130.38 and it’s a buy. Any of you who panic later, I will be buying again at $400. See you later this year.

  5. This is the usual par for the course. Do you really expect the brokers to not slam down the stocks after such an amazing run up? I surprised it got up to $640.
    As usual, aapl will bounce around at 530 for a while. Then it will take off again.
    Aapl longs stay the course – you know the stock will rise again.

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