AAPL Losing it Charm

Yesterday, AAPL had the worst day in the last year. However, Icahn said to buy $500 mln more of Apple shares and I see a continuation of share buy-back from the company which is positive.

As you know I am a long term player of Apple stock but I must say that the last 12 months the stock underperform the NASDAQ and had more volatility. I am bringing this point because larger managers are feeling the same discomfort than me.

If AAPL does not launch new products, the company’s future growth is in jeopardy. The IPhone sales will not be enough to keep up with competition.

The other issue is the suppliers sell-off: If you are one of my premium subscribers, you had made money in CRUS, SWKS, QCOM, OVTI, BRCM which are companies that do great when Apple place new orders. Those companies will suffer with the current market conditions thus we need to be careful trading them.

There is a larger concern coming from Android and Windows which during the last 3 years are offering similar or even better features than the latest IPhone.

In a daily bases, its negative with a possible gap filled to 550 but with a down side to 460. Risky!! I am calling for stop losses in long term trade for AAPL. Place Stops every 3 USD from 500 to 480 and consider exit the entire position if AAPL trades below 480.

In a weekly bases still positive, with support at 500 for now. Not sure if it will hold for a long time.

In a monthly bases is negative.