If Apple breaks $419, the stock market will break

“Apple is the most valuable and influential stock in global stock markets based on its market capitalization and its trading volume,” James Kostohryz writes for TheStreet.

“$419 is Apple’s recent low and represents a clear technical line in the sand that stretches all the way back to two ascending peaks in late 2011,” Kostohryz writes. “A violation of the $419 level suggests that Apple will may move down to approximately $350 before it finds any substantial support; $400 may provide a first level of psychological support.”

Kostohryz writes, “At this point, AAPL becomes a leading tell for the entire stock market. It is important to understand that mutual funds, ETFs that and index futures managers that need to liquidate positions will first liquidate the largest and most liquid holdings in order to reduce equity exposure. This means, that in a general market decline, AAPL’s stock will tend to be a leading indicator that will act with a high beta to a fast-moving market.”

Read more in the full article here.

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14 Comments

    1. so do you think that you are perfect? don’t argue. article is important. by the way, APPL will be below $400 anytime soon. but stock market won’t be broken. market is not depending on how apple does. what a stupid.

  1. The Manipulator: The stock market will break Apple at $419.

    “Until now, Apple has been falling due to factors that are specific to the stock.” These factors are, in the chant of Steve Balmer.
    “Manipulators! Manipulators! Manipulators!”

    Apple is doomed, repeat ad nauseum.

  2. What happened to stock movement base on value, products, and fundamentals?

    Oh, I guess “momentum” is a MUCH more valid reason to “SELL!!! SELL NOW!!! SELL, so us market manipulator a will get paid handsomely for doing what we do best! And our crooked customers will make a mint buying up AAPL after we drive the price DOWN, DOWN, DOWN!!!”

    Crap articles like this make me wish I was rich, just so I could pull everything put of this corrupt rat race and forget about it.

  3. After AAPL being the Wall Street ATM for 6 months going from $705 to now $420 for no real reason and now James can see this. AAPL is about twice it’s book value and 3 times it’s cash without debt. I and almost everyone else that lost that 40% of our money fully understands this. I believed only Tim Cook and the Apple board couldn’t understand this. And now, there is one more village idiot. Maybe James Kostohryz could get a job on Apple’s board too.

  4. Go for it Apple! The Stock Market has lost it’s way. It is no longer about backing good companies, but rather about gambling, manipulation and a quick buck. It’s no place for the great company that is Apple. Get the hell out of there! (same goes for your factories in China)

  5. Google will be announcing its earnings in a couple of days and I have not heard one bad thing about the company or what its earnings are going to be like. Definitely no doom and gloom for Google shareholders. No dozens of analysts stepping forward to start a panic and downgrade the stock, either. Google seems to be a perfect company that doesn’t give their shareholders anything to worry about. I don’t hear much in terms of shareholder grumblings, either. So, Google is either doing everything right or Apple is doing everything wrong. Maybe it’s just far easier to run a search engine than it is to build hardware. Or is it possible that Google’s executives know what they’re doing.

    I’m not sure what Apple breaking $419 will have to do with the rest of the stock market. The rest of the stock market seems to be doing just fine without Apple. Apple appears to be the only tech company with major woes. Even Microsoft is only being downgraded a tiny bit considering Windows 8 is being called an outright flop and RT sales are in the toilet. What is it about Apple that attracts so much dirt from everywhere. I heard it would be good for Apple if it does fall further so a stock buyback will be that much easier. Whatever, I’m already braced for more bad news about Apple. It’s coming nonstop now and Apple could easily be at $400 by the 23rd. All the articles about Apple’s leading profits are useless for shareholders. There doesn’t seem any positives for owning Apple when it comes to new investors.

  6. as a company apples “major woe ” is not being able to supply more than one device every 10 seconds to the market . Apple has lent equipment to the suppliers to get that down to one every five seconds . in the meantime Golden Google is selling your email content and ranking the highest bidder to your search . this company that sells advertising that 99% of us ignore and is frankly a nuisance is what wall street thinks is worth bidding up IHAVE NEWS FOR YOU THE EMPROR IS NAKED!!!!!

  7. Wrong. The market is quite capable of going up as AAPL goes down. As has been demonstrated for the last six months. As was the opposite the previous six months. No one stock, not even AAPL, is that important. Another idiot from the Street.com. He’s as bad as the knuckleheads from Seeking Alpha. And yes, we could see $350 easily. We’ll know by next Wednesday which direction it’s headed.

  8. Well, here it is Thursday at 9:20 am PST and Apple is trading at $401.70….. NOW WHAT….??? $255? $187 ?? Whatever the press makes up?? The latter is the most likely..

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