Apple Inc. (AAPL) Ripe For A Pullback?

Apple Inc. (AAPL) Ripe For A Pullback?
ElisaRiva / Pixabay

Apple Inc. (NASDAQ:AAPL) has been rallying nicely over the last several weeks, but not everyone thinks it will last. MarketWatch contributor Thomas H. Kee Jr. lists three reasons he thinks the company’s shares will move lower.

Play Quizzes 4

Apple surged ahead of China Mobile news

One of the reasons Kee thinks Apple shares are primed to pull back is because shares surged 10% starting the week of Thanksgiving until the news about the deal with China Mobile was revealed. He believes investors were anticipating this deal because they’ve been wanting it so much for so long. He suggests investors just knew the time was right for Apple Inc. (NASDAQ:AAPL)’s products to finally land on the China Mobile network, so they bought ahead of the news.

This Long/ Short Equity Firm Sees A Time-Arbitrage Opportunity In This Pest Control Merger

PestYost Partners was up 0.8% for the first quarter, while the Yost Focused Long Funds lost 5% net. The firm's benchmark, the MSCI World Index, declined by 5.2%. The funds' returns outperformed their benchmark due to their tilt toward value, high exposures to energy and financials and a bias toward quality. In his first-quarter letter Read More

Nothing happened after Apple’s big news

He also notes that after the China Mobile deal was revealed, nothing much happened to Apple shares. You might have expected to see a surge because of all the hype analysts have been giving to a deal with the world’s biggest carrier, but we didn’t. He notes that Apple shares often follow the adage, “Buy on the rumor, sell on the news.”

Apple triggers sell-short signal

Kee also said Apple Inc. (NASDAQ:AAPL) shares hit their “longer term resistance level” on Thursday, which he calls “a sell-short signal.” He says investors should hedge their positions because Apple shares could fall down to “longer term support.” He has been recommending to clients that they sell and possible even short Apple.

Shares of Apple Inc. (NASDAQ:AAPL) closed the regular trading day up more than 1%. So what’s next for the stock? We’re still months away from the company’s next earnings report, which could be a catalyst if the company has strong December quarter results. Apple investors seem to like great iPhone and iPad sales numbers at least as much as they like a good Apple rumor. But before then, it’s hard to say exactly what will happen with it.

Updated on

Michelle Jones is editor-in-chief for and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at
Previous article Bank Of America Gets Nod for $500M RMBS Settlement
Next article Low Demand Will Depress Oil Prices

No posts to display