Apple hits death cross

“Apple at one point [today formed] what investors call a ‘death cross’ which occurs when its 50-day moving average crosses below its 200-day moving average,” Sue Chang and Greg Morcroft report for MarketWatch.

“Still, this may signal a short-term bottom for the iPhone maker’s shares as the stock tends to recover and three months later, often outperforms the S&P 500 60% of the time, said Collin Monsarrat at Birinyi Associates Inc. in an analysis issued earlier this week,” Chang and Morcroft report. “Apple may also be pressured by news that the preliminary University of Michigan-Thomson Reuters consumer sentiment index fell to 74.5 from 82.7 in November. It is the biggest one-month drop since March 2011.”

Read more in the full article here.


    1. Death Cross, Elliott Wave, Candlesticks, Head n Shoulders, Pennants. If TA was so good, nobody’s care about how many phones are being sold, nobody’s lost any money over the past two. Months, and we’d all be farting through silk underwear.

      Don’t watch the stock, watch the people that trade billions everyday. That’s much, much harder to do, but is much more profitable.

  1. As it stands now, long-term cap gains taxes are going from 15% to nearly 40% come Jan. 1. Not a bad time to take gains, and reinvest (avoiding wash rules). Might miss some gain, but if you’ve got 300 shares you’ve been accumulating over the past 10 years, it’s not a bad strategy. Chances are you won’t miss it by 25% — which is what you’d do by holding through year-end.

  2. Having spent a short time doing technical trading, and making quite a bit of money in the process, I can attest that charts like the “Death Cross” have merit. However the question is not if you should buy, sell or hold APPL, but whether you should be buying, selling or holding any stocks now. The drop in consumer confidence was predictable. The re-election of Obama as President, with Congress still split, simply guarantees more of the sputtering economy that we’ve been saddled with for years.

    1. Get rid of Obama, and the Republicans in order to win the election must make sure that they don’t put up a Rommey-like monkey for President. This will guarantee to stop the US from sliding to the bottom of the economic ladder.

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