Apple stock continues to fall lower and today it fell through the 200 day moving average confirming the bear trend in the stock. Today I watched a troop of analysts parade in front of CNBC cameras all looking bewildered and trying to figure out what was going wrong with Apple Stock. Why were their predictions not coming true.
I thought this very strange as analysts should know by now that Apple Stock was and still is a huge opportunity for investors both through put and call options as well as buying and selling the shares. But to do this without knowledge of basic fundamentals behind what drives stocks as well as an easy to follow signaling system, is a serious blunder.
Imagine how these analysts could have felt if they had been advising clients when to get into the stock and get out of the stock. Apple Stock is another example of why buy and hold just does not work for most investors.
There are many reasons for Apple Stock’s collapse into bear territory. Among them is the number of analysts who have pushed the stock daily to its investors as if it was a “sure thing”. These analysts continued as the stock pulled back to advise investors, readers and fellow analysts that each dip off its high was nothing more than a buying opportunity when in fact technically Apple Stock was so far beyond support. This meant when the time came for the stock to test support, it would have to fall a long way to reach it. This is exactly what is happening.
In the end, there are two things that drive stocks higher. They are growing earnings and support levels within stocks that can continue to build more support as the stock moves higher. Let’s look at support levels in Apple Stock and then a very easy to apply moving average strategy that works on just about every stock. Understanding both of these, support and an easy signaling strategy, would have made investors a huge profit rather than the enormous losses many are taking now.
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