Despite good headline earnings numbers, the market still sold lower the tech monster that is Apple (AAPL), closing lower by a very significant -8% @ $506. With a break of key support, the 200 day MA - currently $479, is a natural price attractor in the coming days.
As I noted yesterday, maybe if AAPL had made a quarterly loss - like AMZN or TWTR, it'd have risen?
These remain crazy times, and AAPL is one of many stocks that are still mis-priced by the market. I realise some might argue that 'the market is never wrong'...
I can only refer anyone with that view to the bubble highs of 2000 and 2007. Wasn't the market wrong then about the near term outlook?
Anyway..AAPL raked in $14.50 EPS in Q4, which is makes for an astounding annual EPS of $55/60. Considering the stock isn't even $550 now..that makes the PE...sub 10..which is frankly...plain stupid.
see key stats @ yahoo finance.
Despite noting the 'mis-pricing'..there is indeed natural downside to the 200 day MA..which is currently close to breaking into the $480s. A hit of that looks viable in a few weeks..if not days.