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