Continued Apple swoon could crush this market

“Crumbles by commodities and the Colossus of Cupertino have been getting much of the blame for the market slumping in seven of the past 10 sessions,” Victor Reklaitis reports for MArketWatch. “‘If AAPL doesn’t find its footing soon, it may risk a deeper drop,’ writes Andrew Nyquist, over at See It Market.”

“And as goes the largest company by market cap, so goes the whole U.S. stock market,” Reklaitis reports. “Or at least a further slide by Apple would act as a mighty powerful brake on the S&P 500, where it’s about 4% of the benchmark, and on the growthier Nasdaq 100 where it’s a 14% chunk.”

“So, what’s the matter with Apple? For the first time since September 2013, the tech giant’s stock has knifed under the closely watched 200-day moving average. Many chart lovers use that as a guide to a stock’s long-term trend,” Reklaitis reports. “Also, Apple has entered into what’s often called ‘correction territory,’ by dropping more than 10% from its peak. Nyquist suggests Apple, which closed at $118.44 on Monday, could tumble into the $109-to-$115 range.”

Read more in the full article here.

MacDailyNews Take: The scam continues. Use it to your benefit or just enjoy the show!

SEE ALSO:
Apple replacing AT&T causes Dow Jones Industrial Average to suffer – August 4, 2015
Apple stock now officially in correction territory as it crosses below key technical level – August 3, 2015
Nasdaq retreats amid tech selloff after Apple’s record results – July 22, 2015
Apple earnings: Good is never good enough – July 22, 2015
Cowen downgrades Apple on record quarterly earnings results – July 22, 2015
For Apple, more success raises more questions – July 22, 2015
Sorry, haters: Tim Cook confirms Apple Watch sales are much better than you think – July 22, 2015
Here’s how many Apple Watch units Apple sold – July 22, 2015
Drudge screams: ‘APPLE FUTURE QUESTIONED’ – July 21, 2015
Apple poised for $50 billion valuation loss after posting ‘disappointing’ record earnings – July 21, 2015
Apple shares plunge after ‘disappointing’ record third quarter results – July 21, 2015
MacDailyNews presents live notes from Apple’s Q315 Conference Call – July 21, 2015
Apple pulverizes the Street with record third quarter results – July 21, 2015

32 Comments

    1. Hey, the traders are pushing things down for a damn good reason.

      Because? They know new products for “Back to School” will give them a method to ride the stock back up again.

    2. 10 Reasons Not to Buy Apple:

      1. Tim Cook is incompetent as CEO

      2. Force Touch is a worthless gimmicks and most consumers will stick with iPhone 6/6 plus

      3. Apple Watch has FAILED

      4. New ripoff Macbook is viewed as a joke

      5. Apple’s OSX is now extremely hackable

      6. Apple’s Desktop and Mobile software offerings have never been buggier

      7. Tim Cook milked the iPad and failed to innovate or improve upon it, and now he completely ignores it

      8. A larger iPad that still depends on a crippled, mobile OS will not improve the iPad’s fortunes; and lazy Cook will NEVER allow it to be more powerful

      9. Apple routinely overcharges its most loyal customers for storage

      10. A future where Apple relies 100% on the iPhone is not realistic and is a clear sign that they need new leadership

      Bonus Reason: Apple Music sucks and iTunes is even worse!

    3. I entirely expected this. August is the month in which iPhone sales will crater as everyone knows that new models are going to be announced in September. Who is going to buy an iPhone 6 or 6plus NOW? Smart buyers are going to wait for September for the new models and the old ones to be discounted.

      It is also when Xiaomi releases their new models. . . copies of last year’s and their copies of what they think Apple’s new models are going to look like. Naturally they are going to sell a shit pile of them to those looking for a bargain and to look cool with their iPhone look-alike wanna be phones. The stock market gamblers don’t know this and think it is a portent of the future. . . those that DO know this will ride a long and then buy bargain value AAPL and ride it back up when Apple iPhone 6s and 6s Plus sells in a land office business next month to the shock of the pundits and the investors who sold out.

      1. No, a petard is an Earth mounted mortar that fires a ball in a high arc to fall inside the walls of a protected castle intended to wreak havoc inside the walls without first having to breach them. The loader could be “hoisted on his own petard” in the process of loading in because it was necessary to lean over it while in the process of putting the package of powder and then the ball or bomb in the barrel. Premature detonations could occur if embers were left from the previous discharge or merely from a static spark, thereby causing the loader to fly along with the projectile or at least be hurled away after his body was holed by the force of blast or ball leaving the barrel. It was far more dangerous work than cannon loading.

  1. It’s time to exercise some of that large stock buyback authority, Apple. Make my ownership of Apple higher, without me buying more AAPL shares. And maybe I’ll do some “personal buyback” of AAPL shares I sold a few years ago too (although the current price is actually significantly higher than when I last sold AAPL).

    Can’t control what the idiot sensationalist media write. Apple will keep on making historic record-breaking profit; “big media” will follow along (in the dust AFTER the fact), kicking and screaming (every time AAPL hits a near-term low) that Apple is still doomed. This time, not only is Apple is doomed, Apple is dooming EVERYONE else too!!!

    If they robotically repeat the same story enough times like some android, they figure they are bound to be right, eventually… 🙂

    1. It looks like that was happening yesterday. There was a huge surge of trading volume for a couple of hours in the middle of the day yesterday, and the daily volume was 50% higher than normal.

      Either AAPL was buying or another large buyer like Carl Icahn stepped in. For all the shares being sold, there are buyers who think that AAPL is a bargain at these prices. I’m hoping for $110 to buy more.

      1. I’m certainly “wealthier” because of AAPL. I mostly buy and hold, but sometimes sell to “realized” the paper profit and do something “real” with the money.

        I don’t worry about short-term movement. The near-term low points for AAPL keep getting higher, and that’s a better long-term indicator than hitting those all-time highs.

        But I DO want the media to report things accurately and consistently over time. In an ideal world, the “free press” reports without bias. Unfortunately, in the real world, “big media” is almost defined by their bias (and we’re not just talking about Apple here).

      2. BS. Microsoft has a P/E of 32. Apple has a P/E of 13. If you’re going to say that’s justified then that’s just wrong. If you can give a valid reason why Microsoft is worth that much of a premium over Apple, please explain why? Microsoft in its leanest years didn’t have a P/E of 13. You think Microsoft had a better recent quarter than Apple especially after taking a $7 billion charge? There has to be some conspiracy or bias against Apple. Apple’s fundamentals do not jibe with the current share price when compared to its peers. Apple’s fundamentals are better than its peers.

        1. A real bias does exist. But it’s not intentional. The numbers guys on Wall Street don’t understand Apple and its business philosophy. They never have and they never will. That lack of understanding scares them a little and makes then ‘flighty’ when the market experiences even the slightest perturbation. It’s a market handicap, hopefully, Apple will never overcome.

        2. Perhaps AAPL is viewed as less stable than their peers due to the inordinate dependence of their value on a single product line (iPhone is 61.2% according to Trefis)… 😛 Anything seen as a threat to that income source is probably a major trigger for the stock to move.

  2. I like MDN takes, just enjoy the show. After all Wall Street has the almighty power. It is beyond Apple controlled. Apple just can only make a great products. That’s all. So leave it to WT taking care the stock.

    Who do you think selling AAPL, Carl Icahn perhaps?.

  3. When the national economy is run by people whose main question is how the government can spend more money every single day than the day before even though the government has no money and the debt is already so big it can never be repaid.

    Eventually, if you give all your credit cards to a meth addict insane lunatic you will experience some very bad things. That is what we have done. We have given our national economy over to people who know nothing about economics but love to spend vast sums.

  4. I’m not really worried about Apple, but I just don’t get it. Why would so many investors decide to dump Apple in one day? Do they all follow one another like sheep? Where’s the bad news that triggered this share dump? On Yahoo Finance the volume was around 68 million shares. What am I missing that all these other people know? Are all these people dumping Apple to get into some other hot stock?

    I guess the only thing I can depend upon with Apple is increased dividends. I don’t see what Apple is doing wrong to be so volatile except possibly depending upon the iPhone for nearly all its revenue. Still, I could see if sales had started to fall off but that hasn’t happened yet. Also, why all those high target prices if the stock is going in the opposite direction. It does seem like 2012 but Samsung isn’t challenging Apple to any degree in the smartphone market. No company is.

    How does a company have so much wealth and yet the value keeps dropping. One almost has to wonder if the company isn’t being run properly. I think it is, but maybe I’m wrong. Revenue, profits, reserve cash and retail expansion are there, so why would Apple lose value and less wealthier companies don’t? It’s just scary.

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