Apple (AAPL): Are The Market Generals Falling? ~ market folly

Monday, February 1, 2010

Apple (AAPL): Are The Market Generals Falling?

That's the question on a lot of people's minds as the market has sold off and some of the market leaders have been hit hard. The guys at MarketClub take a look at the technical picture in their recent video on Apple (AAPL). While it's one thing to look at the stock market as a whole, many like to watch the market leaders for the next clue. Apple has undoubtedly been one of the market leaders, having skied from $80 to north of $200 per share.

However, Apple has started to sell-off recently amidst the announcement of its new iPad media device. Apple is aiming to revolutionize the book/media space with the iPad & iBookstore like they did music with the iPod and iTunes. The fact that shares of AAPL sold-off is not really a big surprise though, given that it has almost always been a "buy the rumor, sell the news" kind of stock. Not to mention, it's had a monstrous run. Lastly, practically everyone already owned it, as it was the sixth most popular holdings amongst hedge funds.

The chart is starting to show some definite weakness and they outline $185 as a key level in AAPL. If it breaks down below that, things could get ugly:

Check out their technical analysis on AAPL for a possible 'tell' from the market generals. It doesn't look good right now because as we mentioned on Friday, the Nasdaq broke a major trend line too.

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