Did Apple Just Signal a Market Top?
Feb 16, 2012
Posted by Jody Eisenman | Filed under Uncategorized
Pretty much every investor knows that Apple (AAPL) has been a stellar performer recently. At the end of 2011, AAPL closed at 405. Since then, the stock has exploded upward, culminating in an inter-day high today of 526. However, the stock went through what some technicians are calling a key reversal, with the stock closing today at 497.67, close to the low of the day. With many investors enjoying huge profits in this stock, it looks like profit taking has set in. Although still up about 23% for the year, this late day plunge on volume of 53MM shares (versus an average volume of 12MM) could be a sign that the stock market is ready for at least a short term pullback. The DJIA closed down almost 100 points in its’ worst day in 2012. As I mentioned last week, the strength of this market has been amazing. US stocks have shrugged off the unresolved problems in Greece, the downgrade of European banks, and the Iranian nuclear situation. However, the news of the possible unraveling of the Greek situation and the drop in bellwether AAPL could turn prices around quickly. Although investors have bought every dip thus far this year, I would certainly be cautious right now.
