Apple enters death cross for first time in 3 years

“Apple Inc.’s stock chart flashed its first ‘death cross’ in three years on Thursday, and history suggests investors should heed the warning of the bearish technical event,” Tomi Kilgore reports for MarketWatch.

“The technology giant’s stock dropped 2.5% to close Thursday at a 10-month low, to extend the bear-market selloff from the Oct. 3 record close of $232.07 to 32.4%,” Kilgore reports. “As a result, the 50-day moving average has declined to $194.002, to cross below the 200-day moving average, which slipped to $194.043.”

“The last death cross appeared on Aug. 26, 2015, when the stock closed at $109.69, or 17.5% below the Feb. 23, 2015, peak of $133.00,” Kilgore reports. “The stock shed another 17.6% before bottoming three months later, at $90.34 on May 12.”

“Apple’s death cross makes it unanimous for the so-called ‘FAANG’ technology darlings,” Kilgore reports. “Shares of Facebook Inc. produced a death cross on Sept. 20, 2018, Amazon.com Inc. produced one on Dec. 12; Netflix Inc.’s appeared Nov. 19 and a death cross flashed for Google parent Alphabet Inc. shares on Nov. 15.”

Read more in the full article here.

“Stacey Gilbert, market strategist at Susquehanna, says market appetite could keep Apple under pressure for longer,” Keris Lahiff reports for CNBC. “‘What we have going on right now in the marketplace is what I’d call a buyers’ strike, so it doesn’t really matter if it’s a name that’s worth buying that you want in your portfolio for the next two years or a name that’s still overvalued here. The buyers just aren’t there,’ Gilbert said on ‘Trading Nation’ on Thursday.”

“Even so, to the long-term investor, Apple’s sell-off could present a discount opportunity,” Lahiff reports. “‘If I were looking to something like Apple, if you like the stock, if you like the valuation, I do think that this is a name that in your portfolio two years out, you’re probably happy you own it,’ said Gilbert.”

Read more in the full article here.

MacDailyNews Take: The rout is on! Profit handsomely, everyone!

29 Comments

    1. Death Cross does not mean a company is about to die.

      We are in a Bear Market and Apple was overpriced and still has some ways to go.

      I am a value investor and am enjoying the carnage.

          1. On your first statemnet … still a sicko …Your bets are on destruction !

            On your second statement … Yes it is an opportunity ,, but your statment of enjoying the carnage makes u a psychopath….
            So next time u look in the mirror.. be clear about what you are looking at….Not that it will make a difference for a depraved soul like yours.

            1. Merry Christmas to you too.

              The stock market is no place for fandom, wishful thinking or sentimentality.

              Apple, now having broken below $150 is beginning to approach a valuation more appropriate to their market and significant debt and tremendous overhead.

              Being hard nosed about investing is not wrong. You should never let fondness for a product get in the way of sound fundamentals. If I make some money lost by fanbois who bought on wishful thinking or Apple’s tightly controlled PR, that is just business.

              I was out of most of the market and into cash and bonds before the peak. Those who left all the chips in hoping for a turn listening to the cheerleaders on business TV have seen all the gains of 2018 wiped out.

              I’m up for 2018 and doubt that many can say that.

  1. One thing for certain is that Apple is buying back a ton of shares. They must have saved billions by this drop.

    I’m hoping this price stays this low until dividend time so that I get maximum number of shares in the reinvestment.

    1. If Apple is buying back “a ton” of shares, that shows how useless the whole concept is, at least in Apple’s case. The ENTIRE point of Apple buying shares is to boost the price of the stock. Apple is NOT going to go private. There are 4.75 BILLION shares outstanding. Apple is not going to buy back enough to go private. Apple’s buying back shares is to return money back to shareholders.

      It ain’t working. Shareholder value is being absolutely obliterated. Today is yet another day when the market is slamming Apple much harder than the overall market. This is the 11th out of the last 12 weeks that Apple is falling in value.

      Apple buying back shares is not returning even 1 penny to the share holders.

      It’s pissing away their cash stockpile.

      The market keeps wrecking Apple. Next week the selling will continue.

      1. Von.. changing names does not change the content of your brain…

        Are u even aware that what is going on is not an Apple exclusive problem ..
        yet u go on and on and on and on…
        It must realy be hard to be you.

      2. One might possibly argue that the stock market is wrecking APPL, but the stock and the company are two different things. The market is irrelevant to Apple, which keeps making record profits.

    1. Please spare us the Trump Bs..
      Its not a Trump deal.. its American politics in shambles..and the ignorant division being fueld by shortsighted indoctrinated fools.
      Both sides are acting like fools..

      When u point a finger .. be aware of the three that point back at you.

      1. Although I agree with much of what you write, I think you’re way off on this one.
        Yes, there are “bad people on both sides”. But it’s very far from equal. Trump is a blathering fool, rapidly descending into senility. He lies and distorts constantly. Yes, presidents routinely lie and distort, but this man-baby makes them all look like amateurs. The cowardly hypocritical Repulicans support his idiocy, except for a few tiny voices raised by people when they are close to retirement.

        1. To each his/her own view..
          But i respectfuly disagree Sean.

          And as i have expressed before..I am not a partisan individual .. I see the problem steming from both sides and equally exacerbated by both sides.
          Both sides are shortsighted fools .

          The biggest problem US is facing today.. is The Dividion!!!
          And as long as hate is being prioritized over unity and cooperation.. all will be in shambles.
          I hope the public open their eyes and realize. …

          Whats going on is shameful !

          Someday there wont be a Trump as president to constantly blame things on., lets see if mutual respect and civility emerge then ?……..im not holding my breath.

    2. The market went on a wild run up right after the 2016 election in anticipation of a corporate tax cut and deregulation. It was not founded upon any reasonable examination of the economy in the US or worldwide- much less individual companies.

      Trump, Ryan and McConnell gave us the GOP Tax Scam that has blown a hole in the deficit and will add greatly to the debt. Wages did not go up to any significant amount for the vast majority of Americans and most companies did not reinvest it in the business for competitiveness- they pissed it away on stock buybacks.

      Now the market is in Bear mode until further notice and interest rates are on the rise, but we still have the drag of the stupid tax cut and Treasury will have to sell a lot of paper at a higher cost thanks to Dunderhead, Trumpov, Ryan, McCONnell & Co.

  2. I honestly don’t see any differences in AAPL’s fundamentals today than I saw a couple of months ago yet there is a nearly $300B loss of value from a couple of months ago. I can only hope Apple is buying back stock hand over fist. Of course, the stock keeps getting cheaper each day. Apple is truly valued like a steel mill going out of business while Microsoft is practically enjoying a second coming. Apple stock is dropping so steadily, it’s as though they’ve stopped selling any iPhones to consumers.

    I realize all the major tech stocks are being battered so Apple is in that group and just happens to be Wall Street’s favorite whipping boy when anything goes wrong with the economy. I’m just thankful I’m getting my dividends while those FANG stock shareholders are getting nothing besides a drop in stock value. I wonder if AAPL would be doing as poorly if they hadn’t reported weak guidance and continued to report unit sales. I’ll never know and it really doesn’t matter. It is what it is.

    A 32.4% drop is really quite a crusher for any stock. Especially after all that useless talk about how cheap Apple was with a relatively low P/E. I was certain WS thought Apple was too expensive even then and this massive value drop is the end result. I suppose Warren Buffett will be buying AAPL stock since he said he wants to own much more of AAPL. Please, Warren, buy more AAPL stock because no one else seems to want it.

    1. Apple is not any more punished than other stocks to the extent that the rhetoric suggests..
      Facts:

      Apple has underperformed the market by 7% in the last one month
      Apple has underperformed the market by 8% in the last 6 months
      Apple has underperformed the market by 7% in the last 12 months
      Apple has outperformed the market by 20% in the last 24 months
      Apple has outperformed the market by 50% in the last 60 months.

      Apple is up 30% in last 2 years
      Apple is up 100% in last 5 years

      Its good to keep things in perspective

        1. Yes of course i am aware of that..
          But that is not a direct indicator of US economy!

          I rather look at record low unemployment and healthy gdp!

          We have the fed interference.. and political shambles and uncertainty over tariffs wars

          Market hates uncertainty!
          Plus we are approaching end of year…
          Too many things going on!

    1. The real economy never recovered from the 2007-8 Bush Recession. Wall Street got rich on essentially free money (QE) from the Fed for the better part of a decade.

      The rest of the world is in a recession and the US is not immune. Trumpov’s stupid trade wars, tax cuts and all the rest just sped things up.

      One thing is for sure, 2019 is going to be an interesting year in many ways.

  3. MDNs take is overly simplistic. Small single investors – of which I’m one – don’t make markets move. It’s the mega funds that push and pull markets and if they are hedging that Apple is too high – we all get dragged under. I’m down almost 50K and not happy. Blame? Yes it’s complex but first to the dock should be Tim and the exec. Just when the gol al markets were faltering hey brought out new hardware that is eye watering in price. It’s very very telling that trade in ‘offers’ are now appearing in Apple retail stores rescuing the XR to 500 bucks – the price it should have been anyway. Fools.

    Then we have Trump. This megalomaniac with his tantrums and instability will ruin us all. Can’t belive folk thought he’d actually bring back success. Read the news dudes. Chaos reigns.

    1. Nooooooooooo. Do not speak of He Who Shall Not Be Named. He is like a the Greater Venomous Asswipe Spider, with its feelers out for any vibration indicating a target.

      Although, maybe even MDN eventually decided that his shit was just way too much and was losing them money.

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