Apple may be the best of all of the coronavirus ‘losers’ – stocks showing relative out-performance vs. the S&P 500 due to the COVID-19 pandemic-induced market crash of 2020.
Dow Jones futures fell solidly Thursday morning, along with S&P 500 futures and Nasdaq futures, in choppy trade. Futures briefly jumped overnight as the European Central Bank announced its own big quantitative easing program. On Wednesday, the coronavirus stock market crash tumbled to new lows.
Apple stock fell 2.45% on Wednesday and Microsoft stock 4.2%. Both Apple and Microsoft, still with market caps above $1 trillion, are members of the Dow Jones, S&P 500 index and Nasdaq composite. Apple stock fell back below its 200-day line on Wednesday. Microsoft, Amazon, Alibaba and Netflix stocks had closed Tuesday just below that long-term level.
All of these tech titans are showing relative outperformance vs. the S&P 500. That’s important. Stocks that show relative strength in a correction are often the leaders in the next market uptrend.
But in the coronavirus stock market crash, relative strength in nearly all cases still means absolute losers. Apple stock may be a best “loser,” but it’s definitely not a buy at this point.
MacDailyNews Take: Apple may be the best of all of the coronavirus “losers.” We’ll take whatever solace we can from that while we wait for this to play out. Apple showing relative out-performance vs. the S&P 500 amidst a veritable stock market shock. “Stocks that show relative strength in a correction are often the leaders in the next market uptrend.”