Is Apple Headed For An Upswing?
Apple (NASDAQ:AAPL) is headed to a third straight day of marginal decline on Friday after falling under 1 percent of both the preceding two days. This trend, according to Market Studies’ Tom DeMark, is a fairly clear indicator of a turnaround that could lead to the company bouncing back starting as early as next week.
“If you look at Apple’s entire decline, the most number of consecutive down days has been three,” DeMark said on CNBC’s “Fast Money.”
The investment research specialist was speaking of Apple’s share price decline over three days in a row ending on December 14 and then again on December 21. The stock gained right after both those periods. With the fall over the last three days having come in “a very narrow trading range,” DeMark noted signs “indicative of a market turn.”
A sudden spurt from Apple, of course, would be something of a surprise considering its overall performance over the last few months. It has now fallen more than 35 percent since reaching a record high in September and is already down more than 14 percent just this year. By comparison, the overall market has been fairly healthy, with the Dow Jones industrial average going above 14,000 points on Friday for the first time since October 2007 and the S&P 500 also seeing an upswing lately.
DeMark acknowledged that. “It would not be outrageous to expect a gap up on Monday,” he said. “[But] we could turn to the upside on Monday and produce an island reversal.”
Joe Terranova of Virtus Investment Partners also separately expressed confidence in the iPhone maker and said he was a buyer.
“With the overall sentiment in the market being good, technology being good, I’m adding to Apple right now, doing it a little bit through the options market,” he told CNBC. “And I think longer-term, that’s the right trade to make.”