Apple traded up to 163/164 in after hours trading last evening after the company convinced that life after the iPhone won´t be so bad.
Services is performing well.
We leave the long-term fundamentals to be discussed by the pundits. More interesting to us is the shorter-term chart and the psychology of investors. The stock is down some 30% from ATH levels. The move lower has surprised many and it has been a one-way traffic move. The bounce since lows, including the after-hour gains is some 15%, not bad if you caught the lows.
The negative trend line from highs is around the 165 level. Note the 50-day average is at that level as well. The 100 day is just crossing the 200 day, and is creating the longer-term death cross.
Do you fade Apple soon or is this the new bull unfolding? One thing is sure, there is much less Apple buzz these days, and we can now turn to focusing on the mighty Fed and what they will tell us later today.
Source: charts by Bloomberg
