{"id":52118,"date":"2020-03-16T21:56:43","date_gmt":"2020-03-17T04:56:43","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=52118"},"modified":"2020-03-17T01:05:10","modified_gmt":"2020-03-17T08:05:10","slug":"the-day-the-stock-market-lost-apple","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2020\/03\/16\/the-day-the-stock-market-lost-apple\/","title":{"rendered":"The Day the Stock Market Lost Apple"},"content":{"rendered":"\n

“Looking for one of the 4% of stocks still trading above their respective 200DMAs? Apple (AAPL) is one of those lucky few. If sellers break AAPL, I foresee two binary possibilities: 1) buyers will finally see enough bargains to go on a buying spree, or 2) buyers give up all hope and the resulting rush to lock in remaining profits in AAPL ignites a fresh wave of selling in the stock market. Regardless of the outcome, I still see AAPL staying stuck in a trading range with its 50DMA as the cap.”<\/p><\/blockquote>\n\n\n\n

This quote was my claim<\/a> as the stock market crash slammed into a bear market. There is of course no necessary connection between AAPL’s behavior and the rest of the stock market, but I am noting a potential psychological connection. Apple is a revered brand, and the stock has remained relatively resilient. AAPL is down 26.0% from its all-time high set on February 12, 2020 while the S&P 500 (SPY) is down 29.5% from its all-time high on February 19, 2020. However, today the stock market lost AAPL. The stock lost 12.9% and closed below its uptrending 200DMA.<\/p>\n\n\n\n

\"Apple
Apple (AAPL) lost 12.9% and broke its 200DMA for the first time during the market collapse.<\/figcaption><\/figure><\/div>\n\n\n\n

Remember when on February 17th Apple warned that its financial results would be impacted by the coronavirus in China<\/a>? the news seems like an eternity ago. The day after that news, AAPL gapped down 3.0% and buyers stepped right in to close the stock with just a 1.8% loss on the day. The very next day buyers nearly finished closing the gap. That moment perhaps symbolizes the peak of complacency in the stock market at the time; it is a complacency that is now hard to believe, much less remember. The stock market has completely flipped to an all-out panic over the coronavirus and the resulting economic calamity being caused in an effort to contain the virus.<\/p>\n\n\n\n