A bearish development for the broad market: The great "lead dog" Apple is stumbling...
Every market phase has its "lead dogs." These are the companies that dominate their industry, like Google, Goldman Sachs, and Apple. Since it's so easy to make the case for owning these shares, most people do.
Apple is one of the world's "easiest" stocks to own right now. Its products are fantastic and selling like crazy. No Wall Street analyst is going to get fired for calling the stock a "strong buy"... No pension fund manager is going to get funny looks from his colleagues for holding it... Tell folks at the cocktail party that you own Apple and you'll get nods of approval. The stock is one of the recent rally's "lead dogs," having climbed as much as 144% from its March low.
Apple's popularity among investors has allowed it to hold steady during the recent market decline. Not many stocks have displayed this sort of strength. But as you can see from today's chart, Apple is dangerously close to violating its December low of $189. A downside breakout below this level is an ugly sign for the overall market. If the "lead dogs" can't keep running, the whole team is in trouble.
Every market phase has its "lead dogs." These are the companies that dominate their industry, like Google, Goldman Sachs, and Apple. Since it's so easy to make the case for owning these shares, most people do.
Apple is one of the world's "easiest" stocks to own right now. Its products are fantastic and selling like crazy. No Wall Street analyst is going to get fired for calling the stock a "strong buy"... No pension fund manager is going to get funny looks from his colleagues for holding it... Tell folks at the cocktail party that you own Apple and you'll get nods of approval. The stock is one of the recent rally's "lead dogs," having climbed as much as 144% from its March low.
Apple's popularity among investors has allowed it to hold steady during the recent market decline. Not many stocks have displayed this sort of strength. But as you can see from today's chart, Apple is dangerously close to violating its December low of $189. A downside breakout below this level is an ugly sign for the overall market. If the "lead dogs" can't keep running, the whole team is in trouble.
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