Wednesday, February 20, 2013

Why you need to sell Apple...

The overly inflated, and overly hyped Apple stock ($AAPL) has seen better days. The competition is creeping up on this company at a faster rate than they'd like. Apple stock is overbought, simple as that. As of this time of writing the stock is still trading at a whopping $451.69. I drew a chart down below to explain why I think the stock price of Apple is going down even further. There is severe bearish pressure, from a technical standpoint alone; you can see that the stock price is trying so hard to keep it above $450 without much success. From a fundamental point of view; there are so many companies that meet (or even exceed!) Apple's products. For instance Samsung with their superior version of the iPad.
Don't get me wrong, I love Apple - in fact I only have Apple products in my house, but I've also seen what the competition has to offer. For the past few years, especially last year it's been noting but a bull run for Apple, that has to come down eventually and ever since it his the $650 area, it's been going down (with almost $200 in a matter of not even six months!) If you own it; dump it! If you don't, short it! There's some serious money to be made in $AAPL!

Apple ($AAPL) stock price visualized on a chart with a so called 'Pitch Fan'. You can see that Apple's stock price drops through all the support levels (click image for a bigger chart).

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