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Jesse Felder
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Jesse has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he works with a select group of clients at Felder & Company, LLC in Bend,... More
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The Felder Report
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  • The (Technical) Bear Case For Apple 2 comments
    Dec 6, 2010 4:10 PM | about stocks: AAPL
     Back in April I first wrote, "The Bear Case for Apple," ticking off a few fundamental reasons to be bearish on the stock (and seriously ticking off the fanboys in the process). The stock price subsequently went into a multi-month trading range. It has since broken out above the range and I recently noticed some technical reasons one might be bearish on the stock at current levels.

     

    Above is the daily chart of Apple's stock price. On Friday the stock completed a DeMark 9-13-9 (combo) sell signal. In addition, RSI, volume and MACD lines are all clearly diverging from today's new high.

     

    On the weekly chart the stock completed a 9-13-9 (combo) sell signal back in early November and has made little progress since.

     

     

    We also have an active sell signal on a monthly time frame. This combo 13 was put in around the same time as the weekly 9-13-9 signal was completed.

     

    For an explanation of DeMark's sequential and combo indicators this is a decent overview. However, Tom's books are the best source for learning his market timing strategies.


    Disclosure: I am Short AAPL.

    Additional disclosure: This is not a recommendation.
    Themes: Technical, Charts, DeMark Stocks: AAPL
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Comments (2)
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  • Michael Dance
    , contributor
    Comments (199) | Send Message
     
    Stock was around 240 when you wrote your first article in April recommending Apple as a short. Now standing at 320 and still adopting the same position. PE is around 14x if you back out the cash and equivalents which does not seem high given growth of 30% plus in EPS. The stock has bounced around last few months but nothing too extravagant What is the basis for you view? Presumably you are also short the market given Apple's contribution to the index?
    6 Dec 2010, 05:52 PM Reply Like
  • Jesse Felder
    , contributor
    Comments (9) | Send Message
     
    Author’s reply » Thanks for your comment, mgdance.

     

    First, "this is not a recommendation." I need to make that very clear.

     

    Second, I'm just sharing part of my research. Take it as nothing more than food for thought.
    7 Dec 2010, 10:51 AM Reply Like
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