What a flop!
Apple’s $37 plus, 6.43 percent sell off was surreal. The world’s largest and most profitable company giving up almost $40 billion of market value while the rest of the market basically yawned? That doesn’t happen often.
The Apple (AAPL) selling on big volume could have been used to finance a move into the financials. Bank of America was up over 5 percent and Citicorp tacked on over 6 percent.
Apple sits right at its .618 Fib retracement of the $88 bounce from $505.75. We still think they will be blow out this quarters earnings, but the stock over owned and the bears know it.
Thus technicals will dominate Apple in the short-term, especially with the Vampire Cross (death cross) staring traders in the face. The 50-day moving average looks to crossover the 200-day in the next week.
Note Apple peaked two days before the big market sell off began in September and we think today’s action in the stock does not bode well for the overall market. Could be wrong, but that’s how we see it.