Friday, December 04, 2009

In Two Weeks, China Unicom Sells Five iPhones At Their Online Store

Apple is a stock I absolutely abhor as we have talked about repeatedly over the years. By any measure Apple is one of the biggest bubbles in history. It is a favorite of hot money which plows the stock for trading gains. Apple is an incredible brand and Steve Jobs has done an incredible job as CEO but what does that have to do with totally absurd stock market behavior since the mid 90s?

Apple still hasn't issued a momentum sell (a favorite algorithm of Wall Street boneheads) but it has been stuck for the last two months. To date, it appears the iPhone is a complete flop in China. At some point momentum traders are going to dump Apple hard. The trigger could be a forced sell or could be poor business results. We already witnessed this once. Regardless of hedge fund and trading desk games in the stock, my downside target discussed before the first collapse still holds. That's a long drop from here.

Story link here.
posted by TimingLogic at 11:05 AM