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?