“The tech giant is in correction territory and sitting below its 200-day moving average after dropping nine times in the past 10 trading sessions. It’s on pace for a 10th decline in 11 sessions Tuesday,” Kristen Scholer writes for The Wall Street Journal. “The stock is now only up 4.5% on the year, almost three percentage points above the S&P 500’s gain. That’s after Apple was up by as much as 18% for 2015 in April.”
“Since Apple reported earning July 21, the stock has been under pressure. Shares slid 4.2% in the session following the release after the tech giant’s iPhone sales missed some analyst forecasts,” Scholer writes. “Since then, shares have only risen one day.”
“John Spallanzani, chief macroeconomic strategist at brokerage GFI Group Inc., attributes the carnage to concerns about China and a ‘technical breakdown’ when shares fell below $120,” Scholer writes. “Once Apple shares slipped through $120, Mr. Spallanzani says options traders began to hedge their bullish positions, driving the stock down further… If they sink beneath $110, Mr. Spallanzani thinks traders will hedge again…taking the stock lower.”
Read more in the full article here.
MacDailyNews Take: More carnage to come? For the sake of Apple’s buyback program, let’s hope so!
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