Apple shares are close to losing their momentum-stock status

“Apple (AAPL) shares have held up better than other momentum stocks, but they have been sliding since they set an all-time high on Sept. 2, when hype and speculation peaked about the then-unreleased iPhone 6,” Richard Suttmeier writes for TheStreet. “Apple plans to report quarterly earnings after the bell on Monday, and the market’s reaction to the news could determine whether Apple shares lose their momentum status. If the stock can’t trend above a key moving average, now at $99.31, it will lose that status.”

“Investors who are long Apple should consider buying weakness to its Aug. 7 low at $94.10,” Suttmeier writes. “A second level at which to buy is the 200-day SMA at $87.39.”

Suttmeier writes, “Investors looking to book profits on strength should consider selling strength to a key technical level at $102.39, which failed to hold at the top on Sept. 2.”

Read more in the full article here.

18 Comments

    1. Totally agree. LOL Its the magic of numbers that these guys love, cause then they do not have to do any work understanding the company and the actual market. Its all just some magic formula that runs the world.

      Wow, such really poor thinking.

  1. Is this any surprise? Brokers have dragged the stock down and bought in their positions. Earnings announcement will provide a surprise upside and the stock will rise again.
    Rinse and repeat.

    1. Wait, what? If they can’t get fired for being eternally wrong, why would they get fired if Apple went private? They’d just move from placing bets on the big boards to placing them on Las Vegas boards.

  2. Wall Street can keep their head up their virtual ___ for ever. Reality is that AAPL will continue to get ridiculously cheaper the more Apple grows. I have been over invested in Apple for about 14 years. I finally took 1/3 of my shares, sold them yesterday and when these idiots tank AAPL again, I will buy my shares back while they are on sale. When the shares creep higher again, I will sell the 1/3 again and buy them back when the idiots tank it again. etc.

    I haven’t heard one talking head yet that really understands all the many markets and products Apple is hitting the market with. For example: What about all those billion dollar server farms? Could Apple become the first global network provider? Where exactly is the limits stopping Apple from doing what no other company or nation can do at this point? And it sells at what P/E? Idiots!

    I am retiring this year from the growth of my AAPL investment! I am not alone.

  3. If I had more available cash I’d buy more AAPL. Silly sellers. Here’s some advice: Don’t sell it. IMHO, based on past performance, as in bought at $23 pre-split, split, split…

  4. I saw no articles leading up to Google’s earnings telling people to sell or that the stock was going flat or would miss its numbers. Same with Netflix. That came as a surprise that they weren’t be able to meet subscriber expectations. There were no analysts saying beforehand that Netflix subscriptions would fall short and investors should sell before earnings.

    However with Apple all they talk about how Apple stock is losing momentum status or how poor iPad sales are going to pull the rest of the company down or there’s going to be some shortage of iPhone 6 Plus units. There’s always plenty of negativity leading into Apple earnings. It absolutely has to be analyst manipulation because there’s no other reason to do such a thing. Why say anything before earnings and let earnings speak for themselves. It definitely seems like they’re trying to get shareholders to bail ahead of earnings based on likely misinformation.

  5. I stopped reading as soon as I saw the word “technical.”

    Whenever I read anything about stocks that uses that word, I run screaming in the opposite direction. Technical trading is pure voodoo.

    Find excellent companies you would love to own if you could buy the business outright. If you believe in them and their ability to grow and generate cash for many years, invest. If they pay a dividend, reinvest the dividends to compound the number of shares of stock you own. Years from now, these companies will grow earnings and cash, and over time, the valuation of your shares of stock in the companies will grow.

    Instead of worrying about technical voodoo, go outside and enjoy the autumn. Some years from now, your Apple stock shares will have grown tremendously in value, and if you’re smart enough to reinvest your dividends, your earnings will have compounded by the added number of shares you receive.

    Yes, intelligent investing can really be that simple.

    But don’t take my word for it. Just do a Web search for some old guys named Warren Buffett and Charles Munger. They taught me all this and more. And last I heard, they have done pretty well with that advice.

  6. Conspiracy theories aside, the stock isn’t going to move when the CEO keeps claiming “magical” upgrades to hard and soft ware when they aren’t. Maybe the watch will be a big hit – it’s at least new if not magical. The rest is hype and investors aren’t buying it.

  7. Apple will beat Wall Street’s expectation on Monday next week plus the buyback shares from Apple billion dollars. There’re no other companies on this planet earth earning so much money like Apple.

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