![]() ![]() The PPO and 14-day RSI are both well into bearish territory, and both are showing oversold conditions. ![]() When bullish momentum does return, it will likely return quickly, as we saw in July and August. The accumulation/distribution line continues to oscillate around its highs, meaning there is big money buying dips, rather than selling rips. That magnitude of difference is certainly significant, and in conjunction with the other indicators, it argues for a bounce, even if that bounce proves unsustainable. The March selling episode saw a max difference of about 7%, the June low saw about 9%, and today’s is knocking on the door of 10%. ![]() That has caused a ton of technical damage to AAPL stock, but there are some silver linings.įirst, I’ve annotated on the chart the difference between the 20-day exponential moving average and the price low for the past two selling episodes, and the current one. For one of the world’s largest companies, that is a gargantuan move. The stock hit a relative high of $176 in mid-August, and is indicated at $136 as I write this. We can see on the daily chart that Apple has been absolutely destroyed in the past six weeks or so. The other bit of good news is that this stock is very oversold, as I shall now demonstrate. Today, I see the valuation as much more sustainable than it has been in the past couple of years, and that’s good news for the stock. That’s fine, but the valuation needs to reflect that. That’s where Apple is today, and that’s where it is likely to stay barring some massive, unforeseen change. While what makes a ‘growth stock’ to one person can be different to another, I will never be convinced a company growing earnings at 6% or 8% a year is a growth stock. When I look at Apple’s prospects, I still see a company that has been valued like a growth stock in the past, even though it isn’t. So, three months on, does Apple fit that description? In short, ‘no’ My goal in my personal investing – and for that of my subscribers – is to find not only stocks that will rise in value, but rise in value more quickly than the rest of the market. Of course, it rallied sharply during the broader market rally, but over the past three months, it has produced almost exactly the same return as the S&P 500. The idea was that the company is now neither growth nor value, meaning I didn’t see a case for it outperforming the market. Back in the summer, when I last covered Apple ( NASDAQ: NASDAQ: AAPL), I said you should ignore the temptation to buy. ![]()
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