{"id":17072,"date":"2013-03-14T00:30:58","date_gmt":"2013-03-14T07:30:58","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=17072"},"modified":"2013-03-14T00:30:58","modified_gmt":"2013-03-14T07:30:58","slug":"apparent-lack-of-negative-sentiment-on-apple-makes-it-hard-to-call-a-bottom","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2013\/03\/14\/apparent-lack-of-negative-sentiment-on-apple-makes-it-hard-to-call-a-bottom\/","title":{"rendered":"Apparent Lack of Negative Sentiment On Apple Makes It Hard to Call A Bottom"},"content":{"rendered":"<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on March 6, 2013. <a href=\"http:\/\/seekingalpha.com\/article\/1250301-apparent-lack-of-negative-sentiment-on-apple-makes-it-hard-to-call-a-bottom\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<p>In late December, <a href=\"http:\/\/seekingalpha.com\/article\/1067311-how-to-trade-apple-s-breakdown-as-negative-sentiment-grows\" target=\"_blank\">I wrote about negative sentiment growing in Apple<\/a> (AAPL). Apple has fallen another 100 points since then for a 19% loss, yet, negative sentiment has not grown. In fact, if anything, sentiment overall has gotten <strong>more bullish<\/strong>. This setup renders bottom-calling in AAPL near useless. After the stock broke through my presumed support at $432 and now even hit my rock bottom target of $420, I am indeed more wary than ever of even more downside. In December, <a href=\"http:\/\/seekingalpha.com\/article\/1067311-how-to-trade-apple-s-breakdown-as-negative-sentiment-grows\" target=\"_blank\">I projected this downside target<\/a> because it would fill January, 2012&#8217;s big gap up that marked a major breakout at the time:<\/p>\n<p>{snip}<\/p>\n<p>The bullish sentiment is currently reflected in analyst ratings and the open interest put\/call ratio. Negative sentiment has failed to grow through shares short.<\/p>\n<p>{snip}<\/p>\n<p>&#8230;it is hard to fault analysts for getting more bullish after a 10% drop in AAPL. After all, AAPL is in a long-term secular bullish uptrend. Previous drops of such a magnitude were golden buying opportunities. In particular, AAPL reached an all-time closing high on April 9, 2012 at $636.23. In just two weeks, AAPL fell by 12% before soaring the day after earnings (see &#8220;<a href=\"http:\/\/seekingalpha.com\/article\/517291-odds-favor-a-big-one-day-upside-after-apple-posts-earnings\" target=\"_blank\">The Odds Favor Big Upside from Apple\u2019s Fiscal 2012 Second Quarter Earnings<\/a>&#8220;). {snip}<\/p>\n<p>{snip}<\/p>\n<p>So, with the stock this cheap, no surprise then that the <a href=\"http:\/\/finance.yahoo.com\/q\/ao?s=AAPL+Analyst+Opinion\" target=\"_blank\">high price target<\/a> sits at a now seemingly lofty $888 and a median $610. Even the low target of $465 is now too high.<\/p>\n<p>When I wrote last December, short interest on AAPL was on the rise, doubling from the end of July and increasing 33% from September. Since then, short interest has actually tapered off. (Note that <a href=\"http:\/\/finance.yahoo.com\/q\/ks?s=AAPL+Key+Statistics\" target=\"_blank\">shorts are still only 2% of AAPL&#8217;s float<\/a>). <\/p>\n<p><center><br \/>\n<figure id=\"attachment_17074\" aria-describedby=\"caption-attachment-17074\" style=\"width: 473px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPLSharesShort.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPLSharesShort.png\" alt=\"Shorts have taken a rest in AAPL\" title=\"Shorts have taken a rest in AAPL\" width=\"483\" height=\"326\" class=\"size-full wp-image-17074\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPLSharesShort.png 483w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPLSharesShort-300x202.png 300w\" sizes=\"auto, (max-width: 483px) 100vw, 483px\" \/><\/a><figcaption id=\"caption-attachment-17074\" class=\"wp-caption-text\">Shorts have taken a rest in AAPL<\/figcaption><\/figure><br \/>\n<strong>Source: <a href=\"http:\/\/www.nasdaq.com\/symbol\/aapl\/short-interest#ixzz2MeGBGBfU\" target=\"_blank\">NASDAQ short interest<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p>Along with the relative disinterest from bears to add to positions is the continued strong bias toward call options over put options on AAPL. {snip}<\/p>\n<p>So, overall, the &#8220;only&#8221; thing bearish about Apple now is its stock price. And it is not pretty.<\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_17075\" aria-describedby=\"caption-attachment-17075\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPLJan2012.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPLJan2012.png\" alt=\"Apple&#039;s January, 2012 gap up that ignited a major rally to April&#039;s all-time high\" title=\"Apple&#039;s January, 2012 gap up that ignited a major rally to April&#039;s all-time high\" width=\"500\" height=\"350\" class=\"size-full wp-image-17075\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPLJan2012.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPLJan2012-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-17075\" class=\"wp-caption-text\">Apple&#039;s January, 2012 gap up that ignited a major rally to April&#039;s all-time high<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_17076\" aria-describedby=\"caption-attachment-17076\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPL.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPL.png\" alt=\"Apple breaks down from major support\" title=\"Apple breaks down from major support\" width=\"500\" height=\"350\" class=\"size-full wp-image-17076\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPL.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/03\/130304_AAPL-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-17076\" class=\"wp-caption-text\">Apple breaks down from major support<\/figcaption><\/figure><br \/>\n<strong>Source: <a href=\"http:\/\/www.freestockcharts.com\/\" target=\"_blank\">FreeStockCharts.com<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p>Be careful out there!<\/p>\n<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on March 6, 2013. <a href=\"http:\/\/seekingalpha.com\/article\/1250301-apparent-lack-of-negative-sentiment-on-apple-makes-it-hard-to-call-a-bottom\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<p>Full disclosure: long AAPL<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(This is an excerpt from an article I originally published on Seeking Alpha on March 6, 2013. Click here to read the entire piece.) In late December, I wrote about negative sentiment growing in Apple (AAPL). Apple has fallen another 100 points since then for a 19% loss, yet, negative sentiment has not grown. In &#8230; <a title=\"Apparent Lack of Negative Sentiment On Apple Makes It Hard to Call A Bottom\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2013\/03\/14\/apparent-lack-of-negative-sentiment-on-apple-makes-it-hard-to-call-a-bottom\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[393,219],"tags":[250,534,419],"class_list":["post-17072","post","type-post","status-publish","format-standard","hentry","category-analyst-coverage","category-high-tech","tag-aapl","tag-apple-inc","tag-short-interest"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Apparent Lack of Negative Sentiment On Apple Makes It Hard to Call A Bottom - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2013\/03\/14\/apparent-lack-of-negative-sentiment-on-apple-makes-it-hard-to-call-a-bottom\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Apparent Lack of Negative Sentiment On Apple Makes It Hard to Call A Bottom - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(This is an excerpt from an article I originally published on Seeking Alpha on March 6, 2013. 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Click here to read the entire piece.) In late December, I wrote about negative sentiment growing in Apple (AAPL). Apple has fallen another 100 points since then for a 19% loss, yet, negative sentiment has not grown. In ... 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