For Apple Inc. Investors, It Looks Like 2015 All Over Again

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AAPL stock - For Apple Inc. Investors, It Looks Like 2015 All Over Again

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If you’re bullish on Apple Inc. (NASDAQ:AAPL), you have some good news to look forward to. If you felt that you missed the boat earlier, I have even better news: AAPL stock looks extremely shaky right now, and that means discount hunters may have the perfect buying opportunity.

I just wouldn’t get in right now.

Let me explain. For anyone considering AAPL stock, it’s starting to look like 2015 all over again. Roughly two-and-a-half years ago, the consumer electronics giant was suffering a lull in the markets. Despite launching multiple products, and working on several more, the iPhone defined AAPL. Make one mistake here, and it was lights out for the company.

Then August 24 happened. It was the last time the markets suffered a “flash crash.” I remember CNBC ran a weekend special to explain what happened, and presumably, to calm investors. The volatility caused tremendous panic, taking down Apple stock in its wake.

What made it particularly terrifying was that the broader technology sector fell into the dumps. Names like QUALCOMM, Inc. (NASDAQ:QCOM) and Micron Technology, Inc. (NASDAQ:MU) fell sharply during the flash crash, and extended their losses into the following year. AAPL stock weaved a similar tale.

However, if you had bought any of these names during the 2016 lows, you looked like a genius.

With yet another market crash on our hands, those who missed the last contrarian opportunity will likely get another go.

AAPL Stock Sparking a Case of Deja-vu

The old adage is that history always repeats itself. While that may not be 100% true, history has a way of resembling itself. And the current uproar over the Dow Jones crash looks quite familiar, which bodes well long-term for Apple stock.

During the epicenter of the most recent market crisis, I was again watching CNBC. This time, I didn’t see a weekend special; Instead, I had the distinct pleasure of watching Jim Cramer call sellers “morons.” It was Cramer unscripted and unfiltered, and I thought it was pure gold.

It was also a golden moment because if Cramer was going to lose his cool like that — isn’t keeping emotional control rule number one on Wall Street? — this crisis is far from over. This means we will see plenty of contrarian opportunities, and AAPL stock is one of them.

However, I wouldn’t jump on shares right away. In this case, time is your best friend. All three major indices — the Dow, the S&P 500, and the Nasdaq Composite — have charted the same ugly pattern. More critically, the last week ended with the indices hanging between their 50- and 200-day moving averages. That pensive trading suggests more ugliness ahead, just like in 2015.

AAPL stock, Apple stock
Source: Source: JYE Financial, unless otherwise indicated
It ended last week closing below its 200-day moving average. Even if you don’t care for the technical approach, you have to admit the trading looks ugly. Over the next few weeks, I wouldn’t be surprised to see $140, or more than a 10% drop from here.

Truth be told, the selloff could be even uglier.

Patience Is Key With AAPL

Adding to technical woes for Apple stock is the fact that the company is having problems with its iPhone X. As I referenced above, that’s a major problem. You can have issues, even severe ones, with the iPad or the iWatch. But when it comes to your flagship product in the peak smartphone era, any setback is a crisis.

AAPL customers are ringing up the phone lines and help forums due to “calls freezing.” Apparently, many iPhone Xs won’t flash their default display sign quickly enough after going into sleep mode, which results in users unable to take calls. Another problem that’s just as annoying, if not worse, is the inability to hang up the phone.

One of the biggest complaints is what Forbes terms the “911 side effect.” Unlike other smartphones, when you engage the iPhone X’s shutdown sequence, it gives you two options: turn off the phone, or call emergency services.

In my first go-around, I accidentally called 911. But before my phone reached an emergency operator, it emitted a piercing siren shriek. It freaked me out, and I never attempted to turn off my phone again.

As an investor, my idea is to hold off until AAPL stock really gets gutted. We have a situation where the technicals and the fundamentals are worrisome, and we probably haven’t hit bottom yet.

Just be patient, and you’ll get your dream company at a dream price.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


Article printed from InvestorPlace Media, https://investorplace.com/2018/02/apple-inc-aapl-stock-investors-looks-like-2015/.

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