I cannot call Apple (AAPL) a general of the market… it is more like Commander in Chief. The stock has broken the 50 day moving average but no big deal – we’ve seen it 3 other times the past 2 months and each time that has simply shaken out the technical traders, and the stock has reversed right back up. What would worry me more is a “lower low” i.e. a break below $240. Close but no cigar thus far today.
Let’s keep an eye on this name since it’s so influential, especially on NASDAQ.
As an aside, a video from a technician yesterday on CNBC – this guy says Apple has potential to fall to $115. While seemingly impossible as this is Teflon Stock #1, it is true that Apple was in the $70s during the panic of 2008. Someone remind me to put the whole portfolio into Apple if it gets below $120.
I just would advise Mr Zimmermann not to show up at any Apple store with that sort of thinking — he might get tomatoes (or iPods) thrown at him by fanboys.
Walter Zimmermann, chief technical analyst at United-ICAP, tells CNBC he sees a “bearish rising wedge” in Apple’s stock and advises investors to unload the stock.
Disclosure: No position