Apple is Swamped

Three rounds of trading weeks for the Dow Jones have not ended negative each week consecutively since October 2019. This is shocking considering that the world has been dealing with a pandemic since March. The three straight weeks of losses were spurred by the massive sell off of heavily inflated tech stocks.

Some of these stocks, Apple ($AAPL) to be specific, have been unable to gain any rebound. After splitting, Apple experienced a two day run up as we predicted, touching $137 briefly before coming down hard, and staying there. Apple has slowly slid down these past three weeks, finishing today at $106.84. The poor performance this week is alarming as the tech company had an Apple Event this week to release plans for new devices such as the new Apple Watch Series 6, but not the newest iPhone, which is usually the headline of the event. No talks about the iPhone is most likely what has extended this downturn for Apple, because to keep things blunt, ol’ reliable looks terrible right now. While Tesla remains volatile, it still has managed to climb back to around its level when it split, and has experienced some time above that price on different occasions. Is this the end of Apple? No. Not at all, but uncertainty is at a high as the stock is not making a sharp decline, this has been a prolonged drop. I theorize that the bottom will be reached soon, which will create for a good buying opportunity on the way up. However, it will be better to see the bottom before making any move, especially as there is still plenty of room on the upside once the downside hits.

-Darnel Shillingford

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