Bad news for the market: Apple stock has broken down

In an ominous sign for the market, Apple (–4.68%, $139.60) stock is in a world of hurt, trading now below a price that investors couldn’t resist before — a price that sent it higher in the past several months.

Down chart

Barron’s:

After Wednesday’s trading, Apple lost its No. 1 ranking as the world’s most valuable company to Saudi Aramco, the energy giant backed by Saudi Arabia.

But perhaps even more disturbing: It’s an ominous sign for the market.

Since early November, Apple shares have found a bottom at $150 each, an amount that drew investors in. They didn’t buy, though, at $150 this time.

And their decision to stay on the sidelines makes it much tougher to know where that bottom price is—and much easier to think that stock will just keep dropping. Shares are already down more than 21% for the year.

No wonder if investors are unsettled. They think: If Apple can’t hold the line, how can the broader market fare much better or even as well?

“It is a troubling sign when investors sour on best of breed names in an already difficult tape,” wrote Nicholas Colas, co-founder of DataTrek. “AAPL’s move today is one more reason we remain very cautious on stocks.”

MacDailyNews Take: For those who can keep their heads, times like these are a gift.

If the panicky want to give us a sub-$135 (or even better) entry point, well, then: “Thank you very much!”

As Warren Buffet says:

Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.

Whether we’re talking about stocks or socks, I like buying quality merchandise when it is marked down.

Be fearful when others are greedy. Be greedy when others are fearful.

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13 Comments

  1. Energy Independencen Broken Down
    Low Gas Prices Broken Down
    Food Stock Broken Down
    Supply Chain Broken Down
    American World Prestiege Broken Down
    European Peace Broken Down
    Baby Food Stock Broken Down

    And now…

    Apple Stock Broken Down

    I’ll give Joe Biden credit, if anything, he is consistent!

    1. Yes indeed, the pattern continues with Democrat presidents, for example:

      During the Clinton administration all things bad were blamed on 12 years of Reagan/HW Bush.

      During the Obama administration all things bad blamed on George Bush.

      Present day, during the 1.5 year Biden administration all things bad blamed on Trump. Lately, mix in bad Putin.

      Point is, Democrat presidents are INCAPABLE of owning up to their mistakes and horrible record, particularly and most importantly, their policies. Then again, what policies?

      Policies that work are NOT endless happy talk bland platitudes breathlessly covered by an adoring Biased media and ZERO objective scrutiny of the daily lies and facts.

      As President Trump proved almost immediately in office the country cannot run on a false propped up house of cards…

    1. Things break down…for every leader, but when that leader can’t/won’t take responsibility, the “leader” isn’t a true leader. Russia is the cause of our inflation, for example. Simple econ…create more parts of the currency, by a record margin, that currency’s buying power is lessened. He inflated/created more by a historical margin. Then again, maybe he doesn’t know…he’s acting differently that in yrs in the past. Mentally, he leans vacant.

      1. Bidementia has a lot to answer for, but he can’t remember what. He’ll be the first and only politician that will truthfully be able to say at his trial “I cannot recall”.

        The previous person that was able to do that authentically when questioned was Robert Mueller, who was clearly also a member of the Bidementia club when he was being questioned about his beyond-dodgy “report”.

      2. “Russia is the cause of our inflation,” seriously, Frank?

        Next you’ll tell us the alleged Russian collusion that elected Trump president, was ALSO the cause our record breaking economic boom first three years of the Trump administration.

        Bottom Line: Russia is responsible for NEITHER. Specifically, electing Trump, record economy because of Trump policies and 40-year high inflation and ALL TIME record gas prices because of Biden policies.

        Russia is a figment of apologists imagination in the Democrat Party, far Left and plastered daily in the newspapers and broadcasts from the liberal media.

        Get a grip and move on people…

        1. Do you listen to the news, GeoB?

          Yes: Biden has attributed inflation to Russia…per oil supply.
          His admin also advocates for abortion for econ health/vibrancy.
          Supply of baby formula for illegals on the border is firm, but citizens experience shortages.

          Suicide of the Sensible

  2. I quit my job in August of 2021 to live off of my stocks, because, well, life is too short. Since then, I have lost $400k… I’m still happy with my decision to quit, but dang… wasn’t thinking that the sky was going to fall…

    1. So you couldn’t see that your stock was artificially inflated? You couldn’t see the bubble that all the free money created? You couldn’t comprehend that at some point that huge bubble would pop? Since you couldn’t see any of that let me tell you that right now the bubble is leaking, it hasn’t popped yet. We’re at the beginning of this downhill ride. The downhill ride that should have occurred 2 years ago only now it’s going to be worse than if it had occurred then.

  3. 52 week high to now(approx.): MSFT off about 25%, Google 25%, Amazon 40%. DJIA and SPX nearing 20%, QQQ 30+. Apple was performing at or better than these until recently. Apple really was one of the few that was relatively holding up. Its quick added 10% drop is definitely a bad sign overall.
    As MDN says, this will pass. When it will is ???. But if you have money on the side, there’s potential for outsized gains over the next handful of years. Overreaction is typical for the market, both high and low. Be ready to get in on the lower side then wait for the overreaction to the upside whenever that comes.

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