- Apple has had a tough day here on Thursday, but quite frankly, pretty much everybody has had a tough day.
- This is not necessarily an Apple problem. This is a Wall Street problem.
- Apple initially surged toward the $276 level only to turn around and collapse as the rest of the market sold off.
- I suspect part of this has to do with the job numbers that were released, showing that the job market is not exactly falling apart.
Wall Street Wants Bad News
This is one of those scenarios where Wall Street is cheering on bad news so it can get its cheap and easy money. Without cheap and easy money, the stock market is not necessarily the place to be. Earnings and demand for iPhones rarely come into the picture these days. As it is no longer a measurement of a company's worth, it is all about narratives. And right now, a lot of people are concerned that the Federal Reserve may not be able to cut rates quickly enough. If that is the case, then technology stocks typically will lose, regardless of what they are doing in the real world.
We are approaching a pretty significant uptrend line, but even if we were to break down below there, I do not think it really means much. The $260 level underneath is an area that a lot of people will be watching, as it previously was resistant and now is attracting the 50-day EMA. The 50-day EMA, of course, is an indicator that a lot of people watch quite closely. If we can turn around and break to the upside, then the $280 level could be the next target.
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Keep in mind that Apple is a widely held stock in passive investing vehicles. So there is a bit of a knock-on effect from the general malaise that the markets seem to be having on Thursday. It has been a pretty choppy and noisy week. We will just have to wait and see, but buying the dip still remains the way to go forward when it comes to Apple.
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