Apple ‘slingshot’ in full effect

“It’s May all over again for Apple (AAPL) investors,” Tradevestor writes for SeekingAlpha. “This article was written back in May when the ‘slingshot’ effect was in full force. And almost 6 months later, history repeats itself. So, it’s time to have a relook at things and realize how eerily similar the two situations are, though they are separated by 6 months. If things follow the same pattern as the last time, investors can expect at least the same 25% return we saw after the previous pullback.”

“By now, most Apple investors know the slingshot theory coined by Jason Schwarz,” Tradevestor writes. “The more the stock ‘gets’ pulled back, the more the joy when riding it back up. The theory is that the big funds and institutions try to get the stock as low as possible so they can get in cheaper ahead of the next run up. We believe the fall from $705 to the current price level of about $600 is a great buying opportunity, for a number of reasons.”

Read more in the full article here.

Related article:
Shorting Apple: How interested parties frame stories to drive down Apple’s stock – May 23, 2012

14 Comments

  1. Apple is the best money making stock in history. The pattern is like clockwork. The negative news starts to come out and then the hedgies start selling triggering stop losses all the way down.

  2. I cant believe they get away with it time and time again. the next so called reason for a sell off will be “they didn’t beat by enough” there net profit is bugger than anyone else’s gross revenues AND they are paying a healthy dividend. Apple has stated they are buying back shares Now is a time they should be buying to support the prices for investors who are in it for the haul (as they state is there reason for a high price per share, discouragement of speculators and price stability) and not allowing these games to work

    1. Who gets by with what? The stock has dropped due to constraint of iPhone five production. It’s not like a secret group of people have a meeting and suddenly Apple’s stock goes down! Did you really think once it reached its high point that it was just going to keep going up parabolically? As for being in any equity for the long-haul? Please. It sounds like you must be a buy and hold investor. And now you’re all pissed off because the stock has dropped precipitously. Learn to take profit when any stock reaches its all time high. Remember, profit is why you invest. Try not blaming everyone else and simply do better yourself in the future. And here’s some sound advice for you, AAPL Will drop before a product release or earnings report in the future. Count on it. Take it to the bank. Happens almost every time. Apple is not manipulated any more than any other stock. You just pay attention to Apple, so you pay attention to the stock price. Plus it seems to be sport in trying to come up with the biggest conspiracy theory around here. Think about it. If you didn’t realize when you invested in AAPL that it would not go up forever then you should not be investing. In any stock! Because they all go up and they all go down. You don’t have to be a market timer or a day trader to learn to take your profit when it is so obvious. It’s not a conspiracy. The world does not hate AAPL. They don’t meet in a dark secret room. All stocks are subject to ups and downs due to real events and rumors. It’s the real world.

      1. … until January. A bit more than a year after she bought.
        I’ll have to wait until a year and a day from today. My date should have been on the summer dip, but I had a bit more to put in today, so …
        Why a year? Tax purposes! There’s a double-digit reduction in the rate if you hold it longer.
        Maybe it’s NOT best to sell it whenever it hits a historic high. You just need a bit more nerve to hold out.

        1. You can’t really be serious about taxes? Taxes! So they take taxes on a huge profit. You don’t want that? You’d rather pass up an opportunity to make money? Please. Taxes are always a consideration but you don’t pass up a huge profit because you don’t want to pay a tax on that profit! You invest to make money. You invest to make a profit. You should gladly pay taxes on profit. Because you made a profit! Otherwise, keep it in a coffee can buried in the backyard.

          1. … Because AAPL may drop frighteningly, but it will go back up. I take a 10% – or 50%, or 90% – profit after a few months, and then again a few months later, the taxes will be higher. That isn’t the biggest concern, though. I may take advantage of the games the big boys play, but I’m not one of them. I don’t KNOW when they are going to drive the price down. Or let it float again. So, I’m going to miss some of that profit. I could easily lose more profit by mis-timing than by paying a additional taxes.
            I do gladly pay my just taxes, but – like Mitt – I’d like to play the rules – the ones made by and for the “big boys” – to keep my taxes low.

  3. Attn: MDN – you won’t need your “new high for AAPL” or “Apple slams street” any more. No magic in Post Jobs era. Competitors taking full advantage of decline.

    1. Nah, MDN will dust off the “new high” and use it again before too long. I don’t believe they will be using the “Apple slams Street” for a little while. And MDN may not be saying how many times Apple is bigger than Dell for a while either. Fourth quarter earnings on Thursday probably won’t be “slamming the street”. In fact, I think they will be lucky to come near estimates. But that’s okay, it may drop but I don’t think it will be for long. I’m betting my money that it will be rising sharply by years end. And come January when they report first-quarter earnings……………. well, if production can pick up, (and that’s pretty iffy) then they could be dragging out the “Apple slams the street” and displaying it prominently all over the site! Don’t give up on Apple. They’ll do just fine thank you. This has just been a predictable drop in the stock. But by years end Tim Cook should be smiling.

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