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Rotten Apple: Former Leader Breaking Down
This is just a quick-hitter post on another former leader that is breaking down. As we have mentioned several times – in particular on July 22 and August 5 – the ever-thinning stock market rally is starting to lose the relatively few leaders still keeping it afloat. That July post noted the relative weakness in the equal-weight Nasdaq 100, even as the cap-weighted index remained near its highs. One reason was the performance of Apple Inc. (AAPL), the largest stock in the index, and the entire U.S. market. When AAPL is moving higher, it can mask a lot of problems in the broader market. Unfortunately for bulls, AAPL is beginning to crack. It began on the day of the July post when it got crushed following its earnings release. It has since broken down more, recently dropping below its post-2009 UP trendline.
As the chart indicates, we are using a logarithmic scale. AAPL prices held the trendline in 2013 and 2014 but broke below just last week. Yesterday, the stock tried to retake the trendline – but it failed miserably, losing over 5% today.
For a market reasonably close to its 52-week high that has exhibited an almost unprecedented deterioration in breadth, it can ill-afford to lose the few leaders it has left – especially one rotten apple that just so happens to be the largest stock in the world.
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Triple digit market down...at open. Game on Bitches..
Not quite yet, but its close enough you can taste it.
Funny how a company starts to break down after it bends to Wall Street's will and takes on a bunch of debt just to repurchase shares at an inflated price so Wall Street can get out. Maybe apple should focus on R&D instead of social engineering and bending to the street.
Guessing skipping rent and car payments to get the latest over priced Apple gadget is no longer part of the consumer behavior playbook?
+1M
Wall Street: What can you make of this chart?
Tim Cook: Well, I can make an iHat, an iBroach, or this fancy iWristCorsage!
Wall Street: Simply amazing,I'll buy that for $1000!
We are so iFucked.
I think they could sell an idildo
You miss the point that all about Apple was and it is to be a social engineering machine for dumbing down adn ownership of the masses.
First it was Microsoft - the creator of the IT looser user, then Google and Facebook came 2nd but for total control and enslavement
a 24x7 cool, trendy, enclosed portable solution was needed - so APPL!
This is awesome. I laugh at all the Apple lemmings. AAPL was a great company with Steve Jobs but he is gone and the current CEO is nothing compared with Jobs.
Yeah, but he's gaaaaaayyyyy so it's all good!!!!!!11!!!1 *up-twinkles*
Oh, I don't know.
Cook scores 10 out of 10 for being an aggressive faggot, attacking his NORMAL current and would be customers, by attempting to mainstream perversion that has been (rightly) shunned throughout human history.
Sounds like a fab business model.
At least for neurotic, morally groundless, self-hating Leftists.
it goes the same way, no more or less ... it is just that naturally we run down on stupid ideas about delivering senseless engineering serving on large scale just for dumbing down
http://youtu.be/dscfeQOMuGw space lord
Get me Cramer! Rex Kramer!
https://www.youtube.com/watch?v=HKl6YVubyv8
It's Batmans head!
Apple will be boosted by its new innovation: the iTit.
Its a music playing breast implant, developed after market research found women were tired of men just staring at their tits and not listening to them.
and the AI empowered iDick will follow - the listening, singing and sweet talking dong to help men tired of feminazis bitching that dong doesn't think, listen and talks only shit.
disclaimer. trademark and patent in place to cover concept and terms. you agree to be hunted down by my militarized lawyers team and your head delivered to me in case of infringing
these trademarks and patents.
One company! One f***ing company, and the fate of the entire f***ing financial world is totally dependent upon the number of I-Toys they sell?
Unreal! Fundies, big banks, 95% of all “investors”, piling into AAPL; all gonna get rich as the stock goes to infinity and beyond! “How goes Apple, so goes the markets and the entire world! A really sad commentary on humanity…totally driven by greed. But, get them fearful and they will run like rats leaving a sinking ship.
The Fed bankers know all this and that is why it is so important to talk happy talk all the time, “Economic recovery is strong thanks to our QE!” “We are your heroes! We saved all you little people…buy stocks! Warren is!”
There is no way out of this. Demand was driven forward again by loose credit. The lemmings obeyed and borrowed and bought crap from China. Finally, they are all tapped out, and the plunge begins (again). Millions of immigrants will accelerate the final collapse, not help prevent it. We are Greece, just a few years or months behind it. Free healthcare for all! Including illegals! Entitlements galore! Come get your EBT cards! Why work?
The party looks to be about over. There will be no Fed rate hikes…ever.
that's why in the real IT engineering circles it is called *engineering for looser user* :) ...
Agree with the quote except for the spelling __ loser, not looser; the opposite of tighter.
iCrash
Calling Swiss National Bank, aapl going cheap.
They only BTFATH.
Apple stock gets hit because China devalues their currency -
So what Apple sells in China will generate less profit in USD.
But doesn't Apple manufacture most of its shit in China?
Wouldn't that lower the cost of every thing it sells outside of China and have little impact on the stuff it both makes and sells in China.
What am I missing?
Thats if AAPL's troubled chinese suppliers pass the savings on to Mr Cook.
I think that they will keep hold of their savings, it's not like Apple can instantly move their production to another country as that would take time.
There is no passing on required - the contract price is set - Apple will need fewer dollars to buy the required Yuan -
Some of the majorly expensive components like the cpu, display, radio are imported.
Good point -
Linux Rules
Apple steals
Surely the new add campaign "IF IT'S NOT AN APPLE " will cause the stock to soar to new all time highs. (Sounds like a Cadillac commericial). Maybe they can get Trace Adkins to do the voice over: "APPLE TOUGH"!
swiss national bank is selling.
Good thing they have a lot of $cash, right?
Right...?
I don't quite get the up trendline on this chart as it broke the trendline in 2013 and rose above it. If you connect the trendline from 2009 with the bottom of 2013 we are still above that trendline, so which one do you go by? Disclaimer........I don't not own aapl and just more interested in the correct trendline..........Thanks
old saying best to always keep in mind:
"The bigger they are, the harder they fall"