Time to worry about Apple, again, as stock drops below 50-day moving average

“Apple Inc. has dropped below its 50-day moving average for the first time in nearly a month, suggesting the technical outlook has turned negative,” Tomi Kilgore writes for The Wall Street Journal.

“The stock was down $16.06, or 3.6% at $427.80, and has now lost 7.8% since closing at a three-month high just six sessions ago. The 50-day MA, which technicians use to gauge the intermediate-term trend, comes in today at $434.87,” Kilgore writes. “‘Closing below the 50-day MA is not a ‘magic bullet,’ but it would deem [the outlook] negative,’ said Stanley Dash, vice president, applied technical analysis at TradeStation Securities.”

Kilgore writes, “The key level to watch, Mr. Dash said, is the early-March and early-April lows around $419… If that level breaks, there isn’t much left on the charts until the April low of $385.10.”

Read more in the full article here.

49 Comments

    1. Many funds were late getting into AAPL last year. As AAPL started going straight up last summer hedge funds and mutual funds jumped on the bandwagon so they wouldn’t be left behind. The average retail investor, everyone else, did the same thing. And the stock climbed higher and higher and higher. No one in their right mind thought AAPL should have gone up so much last summer. But it’s funny how people lose their common sense when they are making money hand over fist. If only for a short time. And only on paper unless you sell and make a profit like you should. Then when reality sets in and mutual funds have to rebalance, people sell to make a profit, the tax cliff is coming and AAPL goes back down……..whoa it’s manipulation! Rose-colored glasses.

  1. 13 F filings show that large funds have reduced or eliminated AAPL from their portfolios. It’s their money. They have voted with their wallets. 13 F’s are facts not comments. Had these funds increased their investment in AAPL the stock price would have risen today. Facts. Just the facts ma’am.

      1. Well of course it’s not their money. It’s their customers money. Why would you make such a comment? Their customers expect the funds to invest their money and make it grow. So of course it’s not their money. They are tasked with managing and investing that money. Again, why would you make such a comment? You simply state what everyone understands as though it’s a mystery. You make no sense. And you’re correct, they don’t always invested correctly. Why would you make that statement? Do you know anyone who invests correctly every time? Do you know any mutual fund that invests correctly every time? Do you know any hedge fund that invests correctly every time? Again, you have simply stated fact as though it’s a mystery and only you understand it. If you don’t understand investing, you shouldn’t.

          1. I saw that several days ago. Einhorn was happy with the stock buyback program and increase in the dividend. I’m sure someone here will spin this negatively. “It’s manipulation!” Sometimes it’s just plain funny here.

        1. And if you had put $4000 in Fidelity in 2003 you’d have $8900 today, versus using your own intelligence and intuition, and putting your $4000 is AAPL in 2003, for a balance of $170,000. Hedge funds rely on uninformed people to give them money to invest and to help them make a profit.

          1. Always make your own investing decisions. But unless you are one in 10,000, you’d better have plenty of research done on your own. You don’t just jump into Apple because you like Apple..That makes no sense at all. Learn to take the emotion out of investing. Never, never, ever fall in love with a stock/company. I love Apple and have used Macs and everything Apple makes for decades to make a living. But it does not cloud my investing. And yes, I have invested in AAPL forever. But I’m not a fan boy and I’m not greedy. Two things that keep me from being underwater in AAPL now. I got out at $700. I know how to keep my investing and love of everything Apple separate. Unfortunately many that visit this site do not know how to do that. They strike out in anger when Apple is written about negatively. Even when it’s absolutely accurate. The excuses start coming out. The blame game. You just know that those people will be bad investors. They get pissed off because they don’t know how to act rationally. Just look at a large number of the comments. They’re easy to find. The first thing they do is call others, who try to comment objectively, trolls. They’re easy to spot. Sad.

    1. Charles Ives was a great composer and brilliant in the insurance field, but I don’t think he’s ready to be CEO of a major tech company, especially since he’s been dead even longer than Steve Jobs.

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