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In my last article on the same subject, I said markets do not wait for analysts to capitulate.

While that might be true, the thing of the matter is that when analysts finally do capitulate, the market is probably ahead of them and a reversal is probably in order.

So the question is, have Apple (NASDAQ:AAPL) analysts capitulated recently? Let's see some of the latest analyst ratings for Apple.

Date

Broker

Action

New Rating

Old Price Target

New Price Target

4/16/2013

Jefferies Group

Reiterated Rating

Hold

$420.00

4/16/2013

Stifel Nicolaus

Lower Price Target

Buy

$650.00

$600.00

4/16/2013

Piper Jaffray

Lower Price Target

Overweight

$767.00

$688.00

4/16/2013

Mizuho

Lower Price Target

Buy

$575.00

$550.00

4/15/2013

Evercore Partners

Reiterated Rating

Overweight

$675.00

4/12/2013

RBC Capital

Lower Price Target

Outperform

$600.00

$550.00

4/11/2013

Morgan Stanley

Reiterated Rating

Overweight

4/11/2013

Sterne Agee

Reiterated Rating

Buy

$630.00

4/10/2013

Wells Fargo

Reiterated Rating

Outperform

$630.00

4/9/2013

UBS AG

Reiterated Rating

Buy

$600.00

4/9/2013

Credit Suisse

Reiterated Rating

Outperform

$600.00

4/8/2013

Canaccord Genuity

Reiterated Rating

Buy

$600.00

4/4/2013

Lazard Capital Markets

Initiated Coverage

Buy

$540.00

4/3/2013

Piper Jaffray

Reiterated Rating

Overweight

$767.00

4/2/2013

Jefferies Group

Reiterated Rating

Hold

$420.00

4/2/2013

Goldman Sachs

Downgrade

Buy

$575.00

$575.00

3/28/2013

Credit Agricole

Upgrade

Outperform

$575.00

$505.00

3/27/2013

Sterne Agee

Reiterated Rating

Buy

$630.00

3/26/2013

UBS AG

Upgrade

Preferred List

3/26/2013

Piper Jaffray

Reiterated Rating

Overweight

$767.00

3/26/2013

Oppenheimer

Lower Price Target

Outperform

$600.00

$550.00

3/22/2013

RBC Capital

Reiterated Rating

Outperform

$600.00

3/20/2013

Credit Suisse

Reiterated Rating

Outperform

$600.00

3/20/2013

Canaccord

Lower Price Target

Buy

$650.00

$600.00

3/19/2013

Topeka Capital

Reiterated Rating

Buy

$888.00

3/15/2013

Sterne Agee

Reiterated Rating

Buy

$715.00

$630.00

3/15/2013

UBS AG

Lower Price Target

Buy

$600.00

$560.00

3/14/2013

BTIG Research

Upgrade

Buy

$45.00

$540.00

3/13/2013

Argus

Lower Price Target

Buy

$775.00

$600.00

3/12/2013

Jefferies Group

Lower Price Target

Hold

$500.00

$420.00

3/11/2013

Credit Suisse

Reiterated Rating

Outperform

$600.00

3/11/2013

Robert W. Baird

Reiterated Rating

Neutral

$465.00

3/11/2013

Credit Agricole

Downgrade

Outperform

$575.00

$505.00

3/6/2013

Zacks

Reiterated Rating

Neutral

$453.00

3/6/2013

Citigroup

Downgrade

Buy

$530.00

$575.00

3/6/2013

Berenberg Bank

Downgrade

Sell

3/6/2013

Barclays Capital

Set Price Target

Overweight

$575.00

$530.00

3/5/2013

Cleveland Research

Downgrade

Neutral

3/4/2013

Cowen

Reiterated Rating

Outperform

3/1/2013

Credit Suisse

Reiterated Rating

Outperform

$600.00

2/28/2013

BNP Paribas

Reiterated Rating

Outperform

$700.00

2/27/2013

Jefferies Group

Reiterated Rating

Hold

$500.00

Source: http://www.analystratings.net/

Well analysts are indeed capitulating, just not fast enough and not in bulk. As you can see from the above table, while the price target for Apple's stock has been coming down, nevertheless price targets are still relatively high to where the stock is today.

Only one broker has a sell rating on Apple (Berenberg Bank) and only Jefferies' target price is anywhere near the current price of Apple's stock.

So while the market is capitulating nominally on a daily basis, I think we have to see a whole lot more capitulation on the part of analysts, and we have to see their price targets more in tandem to where Apple's stock currently is.

In other words, we have to see the gap between where Apple's stock is today and where analysts think the stock will or should be closed. By how much? There is no absolute rule for this, but I would say by at least 50%.

In addition, we also need to see (and this is a must) extremely high volume to the downside for about a week.

(click to enlarge)

While there is no rule or definition for capitulation or what it looks like, judging from the volume on the above chart, my guess is that about 200 million shares need to change hands in a week in order for capitulation to be confirmed. From my experience, there is nothing worse than a stock recording new lows on low or average volume.

Bottom line

Capitulation is the natural order of things when the market is out to teach investors and analysts a lesson. And that lesson is that no one is above the market.

Because when everyone thought they could get rich simply by buying Apple, then the market needed to teach everyone a lesson.

I will call the final capitulation when I think I see it, but in the mean time, keep your eyes open for very big volume accompanied by a lot of volatility and a very big daily reversal.

Source: Apple: Desperately Seeking Capitulation (Part 2)