I really don’t know why this is happening, but there seems to be a lot of downward pressure on Apple; even with relatively strong fundamentals - their strong sales of iPods, iPhones, and Macs. As you can see from the weekly chart below, the price has broken through a major support level, broken through the 200 Moving Average and my sell signal was given since April. I just wish I actually got into the trade.
The major pillars of the american economy can’t take the pressure anymore; First it was the Housing market, then the Financial sector, and now we have the Auto industry turning “red”.
The Stock market indexes are also showing signs of a heavy downward pressure. I guess it’s due to the vunerability the economy has in this transition phase.
Anyways, I thought this might be an interesting excerpt, from Bespoke Invesment Group blog; it shows YTD country stock market performance.
See this chart for yourselves, and you be the judge; It seems we might be going lower. However, what still makes me laugh so hard is that analyst still come on TV to tell us we haven’t entered a recession yet. LOL. Oh my…
DJX
If it breaks through the support level, then we might be going for a crazy ride.
So I was going through the news today; Market Watch, doing some personal research which I’ll keep to myself for now. Here’s an interesting thing I came across; Analyst info on Apple
Analysts Recommendations
| Current | 1 Month Ago | 3 Months Ago | |
| BUY | 20 | 17 | 21 |
| OVERWEIGHT | 4 | 6 | 3 |
| HOLD | 4 | 3 | 4 |
| UNDERWEIGHT | 0 | 0 | 1 |
| SELL | 0 | 0 | 0 |
| MEAN | BUY | BUY | BUY |
Ref: Marketwatch.com
Now, can you imagine that the average ratings for 3 months now has been a BUY, not even a single SELL recommendation was made within the last 3 months, even though the overall trend for Apple is DOWN. What do these guys base their analogy on? I mean, they seem to be working extremely had to burn the hard earned money of investors. 
First, they get it totally wrong on when to buy/sell, then they don’t even tell you;
- how much to buy/sell
- when to buy/sell
- when to exit if it’s becoming unprofitable
- when to exit if it’s profitable
I have no beef with Apple; I still consider it to be on my Top Ten list of companies, but lets face reality; at the end of the day, it’s all about PROFITS. That’s what investing should be, and not some fairy tale BUY-AND-HOLD VALUE FUNDAMENTALLY-STRONG investing crap.
Assuming that the Price was about $160, 3 months ago, that means Apple has lost more than 35% of it’s value since then. Ouch! Nice job guys.
Now here’s a snap shot of what my system has been doing (the Sell signals are the red arrows pointing down);
In conclusion, I still stand on the fact that most investors make huge investment decisions based on information that doesn’t really matter; the fundamentals. I think people need to come to terms with themselves that the bottom line in investing is about making money, and not about sentiments or “value investing” or “buy-and-hold” or if a company looks good on paper or not. That’s the reality.
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