Profit Confidential Expert Reports: Apple’s Stock on Verge of Pullback

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In a recent Profit Confidential article, Sasha Cekerevac, financial expert and contributor to Profit Confidential, reports that with Apple’s latest high in its stock price, the Relative Strength Index (RSI) and the moving average convergence/divergence (MACD) indicator did not reach new highs, suggesting that market sentiment has topped out and the stock is on the verge of a pullback. However, Cekerevac notes that Apple’s move up in the summer to its September peak was on expectations of the new “iPhone 5.” According to Cekerevac, now that the product has been released, current market sentiment for Apple is overly bullish, as competitors of the once-clear leader among technology stocks are now beginning to outpace it.

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Profit Confidential Expert Reports: Apple’s Stock on Verge of Pullback

This can be dangerous for investors, when market sentiment is leaning so much in one direction—either bullish or bearish.

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In a recent Profit Confidential article, Sasha Cekerevac, financial expert and contributor to Profit Confidential, reports that with Apple’s latest high in its stock price, the Relative Strength Index (RSI) and the moving average convergence/divergence (MACD) indicator did not reach new highs, suggesting that market sentiment has topped out and the stock is on the verge of a pullback. However, Cekerevac notes that Apple’s move up in the summer to its September peak was on expectations of the new “iPhone 5.” According to Cekerevac, now that the product has been released, current market sentiment for Apple is overly bullish, as competitors of the once-clear leader among technology stocks are now beginning to outpace it.

“This can be dangerous for investors, when market sentiment is leaning so much in one direction—either bullish or bearish,” explains Cekerevac. “If everyone who wants to own the stock already does; then there’s no one left to buy it.”

As Cekerevac points out, many investors try to jump ahead of product announcements from technology stocks, hoping to profit from the upcoming publicity. He adds that investors are aware that sales of Apple’s iPhone generate a huge part of the company’s corporate earnings.

While Apple has a significant lead, Cekerevac believes that the competition has stepped up their game.

In the article “Don’t Trade Apple Until You Read This,” Cekerevac states that while other technology stocks have had to play catch-up with Apple’s innovative products, this iPhone represents the reverse.

Cekerevac believes that the market is getting to the point where the product offerings from technology stocks are so close that the phones are becoming a commodity.

He points out that “This also means that there is much more importance to every product offering from Apple, as any slip-up could give one of the other technology stocks the opportunity to take market share away from Apple.”

Cekerevac concludes that this divergence could indicate that market sentiment has topped out and the stock is on the verge of pulling back.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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