3 reasons why Apple is heading lower

“The price of Apple (AAPL) is ripe for a pullback,” Stock Traders Daily writes for Seeking Alpha.

“First, the stock surged by 10% from the Thanksgiving Holiday week up until the announcement of the China Mobile deal on Thursday. If you don’t think the news was expected, go back and look at what the stock did leading up to the news,” Stock Traders Daily writes “Not only had the Street been wanting the China Mobile Deal for years, but they bought AAPL ahead of the news as well. We can never say for sure, but they seemed to know it was coming.”

“Second, the reaction to AAPL’s stock price after the news was a dud,” Stock Traders Daily writes. “Third, the stock hit our longer-term resistance level on Thursday, and that is a sell/short signal.”

Read more in the full article here.

22 Comments

  1. Lets hope that those who follow this advice and short AAPL get their fingers badly burnt when investors start to realise just how much stuff Apple is actually selling these days.

    Why anybody would follow the advice of an analyst is beyond belief when the analysts are so consistently and disastrously wrong about Apple.

    1. Could you tell us how much Apple is selling these days?

      Apple profits are down year-over-year, you know. Unit sales growth since 2010 have been plummeting. Not all investors are emotion-driven brand fan-boys. We see that Cook is putting almost all of his effort into iOS. The thing is, Apple is being outpaced in hardware, its current profits only coming by skimming 30% profits from iOS software sales. Not a particularly strong long-term strategy, even if Apple fanboys can’t tell what’s happening under their feet.

      http://www.computerworld.com/s/article/9238621/Mac_sales_growth_stalls_here_s_why_Apple_doesn_t_care?taxonomyId=163&pageNumber=2

    2. Totally agree. Analysts love to make up non-sensical bullshit such as this gem:

      “Third, the stock hit our longer-term resistance level on Thursday, and that is a sell/short signal.”

      Of course there is zero description about what this “long term resistance level” is or any factual reasoning what-so-ever. Oh but wait…you mean I can BUY your equally shitty AAPL trading report for $18 so I can read more nonsense and made up crap?!! What a deal!

      I’ve decided I’m allergic to analysts. Makes my head hurt listening to their drivel.

  2. It ain’t about the quality of the company, the products, or the profits: it’s about the movement of numbers. Simply that. The numbers are easier for these folks to understand. Or, rather, pretend the do.

  3. He appears to be correct. AAPL is down today. All stocks pause to take a breather and or decline at some point. Nothing goes up forever. But I believe this is just a short term pullback. Nothing to worry about. I would not get out right here unless you have made a respectable profit. If that’s the case then you certainly should take some money off the table. Never be greedy. But I see the stock going up for the foreseeable future. Things look rosy.

    1. I was expecting a pullback after the news. Nothing new there. The bigger up move will be in late December in anticipation of earnings. Once again margins will be the key item.

    2. It’s merely wishful thinking on your part. Fact: Last year I heard the same thing you’re saying today and I saw the actual result of the stock being dropped like a hot potato all the way down to $390. I’d heard that things looked so rosy that Apple might go to $1,111 and be the first trillion dollar cap company. Fact: Not even close. Actually, so far away Apple couldn’t see $1,111 with a telescope.

      The lesson I learned about Apple is never trust a company that holds onto a mountain of cash while shareholders are roasted on an open fire. Everything you say today may be true but I wouldn’t put any faith into it because I don’t trust Wall Street. Apple is not Amazon. Apple is not Google. Apple is not Priceline. There are favored companies and there are not favored companies. Apple is a not favored company. Apple is making megabucks but is not valued like a megabucks company. One look at Apple’s share price chart for 2012/2013 will tell you that much. Apple is being valued like a worn out old company with a vague future.

      I’m not wasting my energy predicting any positive outcome for this quarter. As far as I’m concerned nothing is a sure thing for Apple shareholders whether the company sells a lot of products or not. Any money Apple makes isn’t guaranteed to reach shareholders pockets and that’s why Apple is able to sit on a mountain of cash.

      The best I can hope for is that the stock doesn’t plummet again and that maybe Apple will be kind enough to increase the dividends again next year. I’ll continue to hold Apple and take my dividends but I refuse to believe that Wall Street will value Apple as high as the Apple bulls think it will. I will continue to buy Apple products for the foreseeable future because I think they’re the best products made. However, I realize that Wall Street does not care about things like that and that’s why consumers are swimming in disposable products. Apple is a great company. Apple stock does not equal Apple’s greatness as a company.

      1. You certainly never heard me say that I thought AAPL would go to $1000 or even $1111. Never. I have seen bubbles before and it was pretty easy to see that a bubble was forming with AAPL. Thus I sold in September 2012. Put all that profit to work in other stocks. The very ones that you mentioned by the way. Too many people, especially many here, we’re caught when the bubble burst last September. They were piling in with no thought for the future. What? You thought it was just going to keep going up forever? I love my Apple stuff and use it every day to make a living. I love the company and its attitude. But I’m no fanboy and I try to think and act rationally regarding a company. I have no problem giving praise or criticizing when appropriate. As does any other rational intelligent adult. It’s called being objective. You won’t see me criticize or defend Apple the company unless I really feel strongly about it. I have a life. I’m not insecure. So I’m no fanboy. And I’m certainly able to think rationally when investing my hard earned money. Lots of it has gone into AAPL over the decades. I’ve done very well thank you. But I don’t put all my eggs in one basket. I try to use common sense and diversify my investments. I also take profit occasionally when appropriate. Profit, it’s why you invest. Sounds as though you didn’t abide by the basic rule of investing. It’s only profit when you have it in your hand. You speak of money guaranteed to reach shareholders from Apple. How did you come up with that? There are no guarantees in life. It’s the stock market. It’s not for the faint of heart. Again, had you sold your AAPL last year when I’m sure you were well ahead, you wouldn’t be singing the blues today. You can’t hold a stock forever. When a stock makes it run like AAPL did last summer you should understand that a precipitous drop is in its future. And yes, Priceline, Google and Amazon have done well over the last year or so compared to Apple. I have invested at one time or another in all of them. Why haven’t you? You seem to understand that they have made money continuously so don’t blame others or these companies because you failed to invest in them. But I have a feeling that all your resources are sitting in AAPL. Probably underwater. I’m sorry about that. And you don’t trust Apple because they have a huge pile of money? Listen, Apple isn’t your best friend. Apple is a huge company in Cupertino California and you are very naïve if you think that you’re supposed to trust a company. And Apple doesn’t owe you anything. They make great stuff and they worked very hard. Your problem is investing. You seem to think that it’s so easy that anyone can do it. You have proven that not to be true. Not to be cruel but it sounds as though you are ill-suited to invest in equities. Don’t be mad at the world or Wall Street because you have failed to invest and make money. How could you have not made money in the last 12 months on Wall Street? Practically everything has done great in that time period. If all your money was in AAPL then I understand. Next time, if there is a next time, try to make a profit on your investment. Buy low sell high.You have to remember to sell occasionally. Buy and hold forever is not a strategy. But I’m sure that if you hold AAPL long enough you will get back to even. But you’ll never make up for all the time that you have lost with the great run in the stock market in the last year. Opportunity does not knock every day. And you have to be home to answer when it does.

  4. I see… He went on Cluster-Fox Business to discuss something of financial in nature. That should be your one and ONLY give away that this column and opinion are complete HORSESH**… Total.

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