I guess the market is ignoring semi-positive comments from the Sterne Agee analyst who states....
Shaw Wu at Sterne Agee says weak demand is not a problem for Apple. In a new note he says, "As far as we can tell, iPhone 5 demand remains robust." He explains the cuts in orders as such: "(1) much improved yields meaning lower component builds and (2) supplier shifts."
Regardless of the bull or bear thinking on Apple's prospects, the market has spoken and investors are selling the shares. Today's sell off not only breaks the $500 price point, which will probably be touted as a major occurrence, thus creating a negative psychological feedback, but more importantly the stock broke the February 15th high volume resistance level. This is seen in the below chart.
Today's decline is on somewhat elevated volume. The break of the resistance puts into play the price gap to the $420 price point.
Shaw Wu at Sterne Agee says weak demand is not a problem for Apple. In a new note he says, "As far as we can tell, iPhone 5 demand remains robust." He explains the cuts in orders as such: "(1) much improved yields meaning lower component builds and (2) supplier shifts."
Regardless of the bull or bear thinking on Apple's prospects, the market has spoken and investors are selling the shares. Today's sell off not only breaks the $500 price point, which will probably be touted as a major occurrence, thus creating a negative psychological feedback, but more importantly the stock broke the February 15th high volume resistance level. This is seen in the below chart.
Today's decline is on somewhat elevated volume. The break of the resistance puts into play the price gap to the $420 price point.
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