Apple ‘death cross’ looms

“One bearish chart for Apple Inc.’s stock doesn’t a bear market make… but how about four scary-looking charts?” Tomi Kilgore reports for MarketWatch.

“First is an impending bearish ‘death cross’ pattern, in which the 50-day moving average crosses below the 200-day moving average. This pattern is seen by many as marking the spot that a shorter-term decline graduates into a longer-term downtrend,” Kilgore reports. “While the validity of the ‘death cross’ has been widely debated, the last time one appeared, just as the stock was pulling back from record highs, the stock fell another 27% in four months.”

“Based on the current trajectories of Apple’s 50-day and 200-day moving averages, a ‘death cross’ should be confirmed in a little over a week, or at least by the end of the mont,” Kilgore reports. “Adam Sarhan, CEO of financial advisory firm Sarhan Capital, said he turned bearish on Apple’s stock earlier this month, after being bullish for about 1 1/2 years, because it broke below key support, including the 200-day moving average. ‘When you see a major break in a stock like Apple, that means the big institutions are selling, not buying the stock,’ Sarhan said in a phone interview with MarketWatch. ‘We saw this in 2012.'”

More AAPL chart soothsaying here.

MacDailyNews Take: Heartening.

[Thanks to MacDailyNews Reader “eldernorm” for the heads up.]

27 Comments

  1. From a new investor’s standpoint (I’m a long-term investor) I’d think Apple is the stock not to own when there are so many other stocks giving back far better returns than Apple. Apple is the only investor buying Apple. Some people say that’s a good thing but I don’t see it being the case. To me it seems like Apple is actually paying for a loss in stock value. The more stock Apple repurchases, the less value the stock has which simply seems stupid to me. Please understand that I don’t understand the stock market that well, so my judgment may be quite wrong. I would think Apple is smarter than that and knows exactly what they’re doing whether I understand it or not.

    I can’t possibly understand why everything Apple does disappoints investors. If the products are good, why should investors be unhappy. I don’t think every product or service a company attempts has to be a huge sales hit. Is something like that even possible for most companies? I don’t think any company can guarantee everything they produce to be a winning product. If it were that easy, everyone would be doing it. I’d think a company was doing quite well just to always keep the accounting books well into the black. Wall Street should never influence how a company is being run. I can only hope Apple knows what it is doing to stay ahead in the future.

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