Apple's stock now in bear territory after 20% drop from peak; was Elliott Wave correct?
last night's re-election of president Obama, well, traders might be feeling out of sorts today. Nonetheless, Apple's stock chart already looked like a disaster waiting to happen before the votes were even made, with both the 50 day and 200 day moving average pierced on the downside. After peaking at $705 on the day that the Apple iPhone 5 launched, the stock is now down to $556 which is a greater than 20% decline from the peak which puts the stock in the bear camp for now.
A drop of another $46 would take the stock down to Ramakrishnan's $510 target and yes, some congratulations might be in order. But the problem is that he made the call months before the stock took off and traded above $700 and we don't know too many traders that would have remained in a short position (a way to profit from a sliding stock, think of it as the reverse of buying low and selling high) $100 against them.
We have made notice lately of the feeling that there are some frayed ends at Apple. The problems with Apple Maps, the dinged Apple iPhone 5 models out of the box and the recent boardroom shakeup. Stock prices look ahead by 6 to 9 months according to some technical analysts. If so, what is this decline in Apple telling us?
1. Droiddoes (unregistered)
HAH - HAH! Should have spent less time b*thcing moaning and (wrongly) suing everyone and their mothers and more time innovating.
They get zero sympathy from me.
16. ZEUS.the.thunder.god (unregistered)
Its happening. "The Begining Of The End"
44. rainyday (Posts: 44; Member since: 04 Sep 2012)
there is an old saying that never fails 'What goes up, must come down"
55. jroc74 (Posts: 5402; Member since: 30 Dec 2010)
I agree with this sooo much....but that also makes me worried for Android...
What goes up....must come down....
80. badini007 (Posts: 18; Member since: 02 Jul 2012)
Android is totally different from ios, first it is open source secondly used by multiple manufacturers, if one fails you have the other and same for Windows.
70. Nadr1212 (Posts: 741; Member since: 22 Sep 2012)
Uh ph 4 Apple, u guys HAVE GOT to step up yo game.
Please do, for ur fans, consumers, and great future products u'll make 4 us to buy, and especially 4 ur own sake!
72. ScottSchneider (Posts: 324; Member since: 06 Dec 2011)
Also... What's Big and Huge Falls Hard...
47. Bernoulli (Posts: 2372; Member since: 01 Sep 2012)
We might be seeing a new nokia here! A new burning platform lol
58. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
More likely the traders are pricing the impact of a recession in Europe into Apple's earnings....
17. PhenomFaz (Posts: 1158; Member since: 26 Sep 2012)
for those of you who understand the stock market well enough to deal in it....short Apple stock, mine gold wait a bit till their next announcement which'll be sometime next May as they have already launched or announced most of their stuff this year and buy again! Simple :)
Apple's stock is not to hold for long term...
Oh yeah and before I go....
BURN Apple BURN...! MUAHAHAHAHAHA :)
43. QWIKSTRIKE (Posts: 946; Member since: 09 Mar 2010)
Apple is in a wave A of wave 5 correction. You have no clue about what this means. If this is true there wont be a next year.
Wave 3 top was 600 and that guy predicted a 545.00 decline, and in that last write up I posted that Apple may see 525 or lower and it did fall to 517 so how was he wrong or way early. The writer of this article has no clue either because had he checked he would see that that guy was way correct and not early at all.
Wave 5 Elliot wave expansion 1.38 was 700.00 and that was the end of the line for now. Apple will try to retest that high as a wave B, and fail then wave C will happen. Apple is already under the 200 day moving average which means funds are have sold or already unwinding. When wave C happens any one near Apple will not be happy.
Those were the technical's, and they look bad since apple is under the 200 day average that means lots of selling. Apple has not failed that 200 day average since the last stock market decline of last years June fail.
The stock market 5 wave cycle is complete since the 2008 decline we did a 78.6% retrace of 1575 2007-2008 top. The major correction is already starting next year may not be pretty
We will test 1390, and then 1336, and if we fail there look for 1200's "IF" you are in any stocks or have investments it is now time to go defensive. By years end it will not be good. Tech is finally about to fall with Apple leading the decline.
Let's see if the Fed's can Q.E. this.....ooops they already are until 2015. I can't wait to see how this is going to play out.
At any rate Elliot waves works and that guy was correct, because Apple did fail to 517.00 before climbing back to a 1.382 projected wave 5 top.
Apple is one of the best performing tech stock of the last 4 years period. Embrace what they have done. I am an Android guy but you have to give them credit for changing the Tech game in the phone/computer technology arena.
46. QWIKSTRIKE (Posts: 946; Member since: 09 Mar 2010)
That's right thumb me down rather than to understand what it is that you are thumbing down. Apple will fail after attempting to rise and when it does I will be just as correct as I was in the last article PA wrote about the Elliot wave prediction. I chart the market and stocks like Apple and also led a group of private investors discussing technical's on the regular.
My friends will tell you that my EW targets are always correct!
52. _APPLE_ROYALLY_ (banned) (Posts: 4; Member since: 07 Nov 2012)
Don't worry be happy. Currently the broad stock market and commodities are in a full blown bull market, $o the focus should be to buy the dips untill proven wrong! We thank Apple yet once again™
61. QWIKSTRIKE (Posts: 946; Member since: 09 Mar 2010)
Don't be foolish re-read what I wrote, and investigate this. When you are done investigating you will find that you don't dip buy at a wave 5 top. This is a wave "A" down correction of wave 5 up. If Apple continue to 545-517.00 and holds then wave B retrace will try to reach 700.00 possibly by Xmas. and then wave C will happen.
When Wave C of major wave 5 top fails holy hell will let loose in that stock period. 79.00-700.00 from December 2008-2012 is a lot of profit, and dip buyers at the top is why B waves trick so many dip buyers. I have led technical classes on the smart traders site and investors web site for a group that will tell you that I am correct.
I have taught many people how the waves and pivot points affect stock price action,
56. jroc74 (Posts: 5402; Member since: 30 Dec 2010)
They probably thumbed you down cuz they skipped the meat n potatoes of your post and just read the last paragraph...lol. Or didnt really understand the meat n potatoes and understood the last paragraph...lol. I barely, barely understood it...and I dabbled in the stock market last year.
I agree with what you posted....and thanks for the lil lesson.
66. Slammer (Posts: 1402; Member since: 03 Jun 2010)
Quik, Don't take it personally.
Truth is sometimes met with scepticism and disapproval when the opinions of those passionate about their products are met with opposition regardless of the factual information.
79. PhenomFaz (Posts: 1158; Member since: 26 Sep 2012)
I give Apple points for changing the tech game way back in 2007 but Apple wasn't the first on the touchscreen scene...it was HTC and even HP had touch devices and so did Ozone!
But yes I give them points for changing the tech game and sadly thats all what I can give them points for....I cant give points to them for being stuck-up arrogant jacka$$e$!
Innovation they brought five years ago....taht was the beginning and end of their innovation and especially after the iphone 4 and ipad 2 their innovation is dead...which was so 2 products ago!
23. AnTuTu (Posts: 1311; Member since: 14 Oct 2012)
As I said couple of weeks back "End of an era coming soon" so sit back and relax.
Those who are saying Apple doesn't innovate, I am disagree with that statement why because they did innovate how they can fit 5th row of apps on iPhone 5 :p
32. Mxyzptlk (Posts: 6456; Member since: 21 Apr 2012)
I don't think apple asked for your sympathy. They aren't doing bad btw.
37. PapaSmurf (Posts: 9809; Member since: 14 May 2012)
Because stock falling 20% and suing everyone for the dumbest reasons doesn't show a sign of them doing bad according to your logic.
Step out of the dream world and enter reality.
42. GENERAL-LEVY (banned) (Posts: 23; Member since: 06 Nov 2012)
ROTFLMFAO. HAHAHAHA. "GOD HELP US, AND PRAY AND WISH, THIS ROTTEN APPLE TO GO BANKRUPT."
75. johnbftl (Posts: 264; Member since: 09 Jun 2012)
Since they were up over $700 mid September and now closed at $558 today on November 7, yes they are doing really bad. A 21% drop in less than 2 months is cause for alarm for any company. Jeffrey Gundlach from Doubleline Capital is projecting them to fall to $425. That would make it a 40% drop. Just like the .com era, their bubble has burst.
50. _APPLE_ROYALLY_ (banned) (Posts: 4; Member since: 07 Nov 2012)
Don't worry, it'$ only 20% drop, iP5 will repeat history, once yet again™
62. zackh121556 (Posts: 100; Member since: 01 Feb 2012)
Soon Apple will need to make Android devices to stay alive lol talk about a bitch slap to the face
65. moroninc (Posts: 192; Member since: 14 Jul 2012)
Republicans.. you dont say? .. wonder if Apple might consider suing Obama for winning the elections.. its far fetched but you'll never know with these clowns.. #Mess
2. gwhyte01 (Posts: 44; Member since: 09 Jul 2008)
Well it wasn't gonna last forever. There's just too much tech out there for apple to eat so much.
33. Mxyzptlk (Posts: 6456; Member since: 21 Apr 2012)
Stocks fall and drop all the time. Apple is the most valuable company in the world. I don't see the doom and gloom this article is trying to picture.
40. PapaSmurf (Posts: 9809; Member since: 14 May 2012)
Apple is more important that oil companies?
Your sense of logic puzzles me.
76. gallitoking (Posts: 4704; Member since: 17 May 2011)
we are in a tech site when we say Apple is number one or Android we don't mean of the world.. again we mean in the tech world...
3. PhoneArenaUser (Posts: 5498; Member since: 05 Aug 2011)
Other companies are based on tech while Apple was based only on brand name (basically on nothing) and when brand name starts losing popularity Apple starts drowning.
12. matrix_neo (Posts: 329; Member since: 03 Nov 2011)
100% agree with you. They don't manufactured their own product and mostly their ideas in creating their products are based on stealing, copying and worst is claiming they created it.. With the new litigation with Samsung, it might affect more their stocks. I'm sure some stockholders doesn't like apple the way it compete, sooner or later they will leave apple.
20. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)
I just don't agree with you, Apple is based solely on tech, think about it: there's the Original iPhone, then there's the iPhone 3G, then the iPhone 3GS, the iPhone 4, the iPhone 4S, iPhone 5 and we mustn't forget the New iPads 1, 2, 3, and 4, respectively. And, now, there's the MiNiPad and the unannounced iPhone 5STD. Not to mention all those great adapters that they use on their devices and the FABULOUS Apple iMaps on iOS 6. So, you see, Apple is 'full of tech'; the kind of tech that backs-up a toilet in a power outage due to a storm. Hey, but some people's sewerage back-up is another person's gold mine.
24. XPERIA-KNIGHT (unregistered)
iphone 5 "STD" LMBOOO!
26. PhoneArenaUser (Posts: 5498; Member since: 05 Aug 2011)
You did not understand me, Apple is tech company but Apple's tech is based only on brand name (marketing) and nothing more. Other companies are working on both sides high specification technologies and marketing while Apple is working almost only on one side marketing (a.k.a. fooling people).
34. cheetah2k (Posts: 1124; Member since: 16 Jan 2011)
Take Samsung for example. Pretty much all of the core components that make up their phones and tablets, they actually design and build (screens, cpu's memory, etc, etc) - where as Apple claim everything they didnt make is theirs..
4. ilia1986 (unregistered)
"If so, what is this decline in Apple telling us?"
It's telling us that the human race has finally learned how to think on its own.
5. gallitoking (Posts: 4704; Member since: 17 May 2011)
is not how many times it falls but how many times it can recover
25. AnTuTu (Posts: 1311; Member since: 14 Oct 2012)
Awwwwwwww don't cry mate no one can stop this now :) lolzzzzzzz
30. Droiddoes (unregistered)
"It is not how many times it falls, but how many times it can recover."
THAT is how that sentence should have looked. All you were missing was a capital "i", a comma, and a period or even an exclamation point would've been appropriate. You are getting closer and closer to making a real sentence every day, come on man I KNOW you can do it!
38. Slammer (Posts: 1402; Member since: 03 Jun 2010)
Being one of the oldest tech geeks on this site, I've been around Apple a long time. I have tried to make my opinion as clear as possible through experience. Apple's most glorious moments were with Steve Jobs manning the ship. Now that he is no longer present, Apple's history is slowly starting to repeat itself. Steve was Apple, Apple followed Steve and the consumers loved the combination of Apple products in conjunction with his boisterous leadership. While Apple is strong, the turn has begun to happen. Apple needs to innovate strongly along with more open acceptance and less proprietization. They cannot just evolve from their present products or position. This is where the rubber meets the pavement. If not, this will be Apple's last recovery. Cheerleading blindly at this point, is ignoring the true reality of what I am trying to convey. Do Apple supporters not see the tremendous inroads competiton has made to bring more exciting products to the market? It cannot be denied. Calling products cheap in comparison of Apple, has now become irrelevant. It simply doesn't compute.
54. AnTuTu (Posts: 1311; Member since: 14 Oct 2012)
Well said Slammer +1.
To be very honest I liked Apple when Steve was around. But now these guys are following different approach.
They have been keep on pushing the same product which Steve led 6 years back.
Why I hate Apple now because they are accusing one of my favorite manufacturer "Samsung" without any reason.
69. Slammer (Posts: 1402; Member since: 03 Jun 2010)
We cannot deny the success and overall feat that Apple has accomplished. But, as we have seen historically, Steve Jobs was the sizzle for the steak. Apple eliminating and moving associates around, is a desperation move. We must remember that Steve Jobs hand picked both Jony Ive, Tim Cook and Scott Forstall. Whether they saw eye to eye on everything or not, this was the dream team that catapulted the company to stardom. With descention amoung the crew since Steve's passing, I fear that the vulnerability has overtaken any further success for Apple. The wealth Steve created and left for Apple will sustain them for some time. However, the very substance that elevated them to their current position; is gone.
51. jmoita2 (Posts: 930; Member since: 23 Dec 2011)
Below please find a link to an English Composition 101 course...
77. gallitoking (Posts: 4704; Member since: 17 May 2011)
at least this time you didnt said anything hateful towards Apple.. was getting tired of your same comments... when you changes your ways so will I
81. Droiddoes (unregistered)
OK, apple sucks donkey ass and so does your grammar, punctuation, and sentence structure.
LMFAO at the mentality of an apple drone. "Well sir, you can question my intelligence, insult my tenuous grasp on the english language, and call me retarded, but at least you didn't insult my god apple!"
6. Aeires (unregistered)
Nothing that a pack of lawyers can't fix.
7. messiah (Posts: 434; Member since: 19 Feb 2010)
Sell now. It only makes sense. Get your five hundred per rather than wait like RIM shareholders and get seven bucks per. It can only go down and will never go back up. Not with competition courts, human rights.
9. networkdood (Posts: 6330; Member since: 31 Mar 2010)
so, trade in your apple stock for RIM stock?
36. MartyK (Posts: 730; Member since: 11 Apr 2012)
In a few months you won't be able to tell the difference between the two....hahahaha
8. hobble (Posts: 130; Member since: 11 Oct 2011)
My buddy has about 3k shares of apple. I told him to sell...
10. webOSlove (unregistered)
Hello Apple, meet karma.
11. cretinick (Posts: 147; Member since: 25 Jan 2011)
I'm not an Apple fan. If I could I would buy all the Nexus line in November 13th. But...
It's a good moment to buy and wait until the next year iPhone and the New iPad Mini.
Apple still stay for a long time. They don't sell only tablets and Phones... They have very good and, well made, PCs and Laptops too... iTunes and app store...
19. ahomad (Posts: 173; Member since: 15 May 2012)
but they got to their highest, I am sure they will just go down and won't go back up. I am not saying they are going to die, but they will go down until they reach a balance (probably 510) then starts fluctuating.
22. Zero0 (Posts: 592; Member since: 05 Jul 2012)
Sounds about right. Their market capitalization a while ago was just unrealistic. $625 billion, I believe it was. That's basically Google, Microsoft, and Intel combined, maybe with room for a relatively tech company in there (AMD, ARM, NVIDIA, or something of that nature). If you wish, swap Amazon in for Intel.
13. The_Innovation (Posts: 597; Member since: 18 Jul 2012)
So Luke finally fired the missile into the hole of the Death Star.