Apple has been the hot topic lately. Yet, over one month ago I warned about the decline in the stock saying “when Apple can’t even be supported, watch out below!”

That was on August 4th, the day Apple’s stock plunged 4.8%, its worst single day drop in nearly one year, at a time when everyone was bullish on Apple. That means there is a lot of Apple stock to be sold when the decline gets serious.

Ahead of Apple’s highly anticipated “Wonderlust” event on September 12th, investors who are long Apple at this point in the market cycle are very vulnerable.

In fact, a 30% drop in Apple’s stock is likely in the coming second phase of the bear market that will develop over the next year.

On September 7, 2023 we provided his following analysis and forecasts for Apple to our valued members:

• Apple is possibly the most ‘over-owned’ stock globally. That makes it very vulnerable to a strong decline, especially as sales and profits appear to have made longer-term tops.
• China is now starting to ban iPhones for use by its governmental employees. That will of course negatively impact Apple’s bottom line as those people will need to switch to a different mobile phone.
• Recent reports from Apple show us that it is no longer a growth stock, although it is selling at valuations of a “high growth” stock. A “price adjustment” in Apple’s stock has already started in our opinion.
• Most Important: To us the chart is giving bearish technical signals, suggesting a first price target of $170. However, eventually, the stock could get to the $125 area. That would be 30% down from here. Of course, these are our projections from the chart.

• If this correction in Apple steepens then all the major indices will have big down moves as well. That supports our signals from other methods of analysis. Remember, it’s still a bear market, folks!

Our rule has been that Apple will always be the last highly visible big cap stock Wall Street will allow to decline significantly. Here we are.

For 46 years our motto has been: “Timing is Everything.” There is a time to be bullish, and a time to be bearish. Advanced Technical Analysis may help you decide what time it is.

Wishing you successful investing,

Bert Dohmen, Founder
Dohmen Capital Research

P.S. If you enjoy reading research and insights like this, we encourage you to read our latest award-winning Wellington Letter, titled “A Convergence of Bearish Forces Ahead” (published September 4th) by signing up today at DohmenCapital.com.

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