Stock watch

Clem Cham­bers, CEO of ADVFN, the lead­ing stocks & shares web­site

Mac Format - - APPLE WORLD -

Ap­ple has taken a dive. In the last is­sue I wrote that I had just gone short; this was at $124 a share and as I write it is at $114. In a strange way this neatly demon­strates the dif­fi­culty of stock spec­u­la­tion be­cause, like all good traders, I put a 5% stop loss in. Ap­ple shot up to $133 be­fore it slumped, so while I can say I was cor­rect in my guess of a fall­ing Ap­ple, I lost money.

It is the­o­ret­i­cally im­pos­si­ble to time the mar­ket, so call­ing the top on Ap­ple must only be the vaguest of ges­tures. Yet the Ap­ple Watch may be a bear­ish wake-up call for some stock fans. It has nice bits but it isn’t set for $18 bil­lion sales in year one as pre­dicted by Wall Street.

Ap­ple’s im­mi­nent re­leases will need to come to the res­cue be­cause the ‘new’ mir­a­cle prod­uct just isn’t. It doesn’t help that the mar­ket as a whole is look­ing sickly. It will take a fairly sig­nif­i­cant set of neg­a­tive events to get Ap­ple un­der $100, but this year has al­ready seen sud­den and vi­o­lent mar­ket moves, so it could hap­pen.

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