Chart of the Day: How Concerned Should We Be About Apple?

Certainly the anticipation is up and worthy this week with Action Alerts PLUS name Apple AAPL  releasing their earnings after the close on Feb 1. The company has a tradition of beating the estimates and making some 'noise' about new products or a refresh of existing ones.

Often following earnings the stock starts to move upward and usually takes the market with it. But the chart of Apple is showing some valid concerns. The company is not growing as it used to, call it the "law of large numbers." Eventually a high growth rate is going to peak as a company seeks new ways to create an earnings stream.

Apple has been the master of this over the years and now perhaps a deep dive into the world of AI might be something that drives earnings growth into the future. But, again, the chart is showing us some worries.

The MACD (moving average convergence divergence) has rolled over again for a sell signal. Notice the stochastic is heading downward while money flow is clearly not as strong as it was in late 2023. That means big money managers are not adding more stock.

Lastly, the candles are now pink which represents cautiously bearish on the GoNoGo indicator. Support though is at the drawn-in trend line, let's call it $177.

We do like Apple for the AAP portfolio, we rate the stock a Two, which stands for 'stockpile on pullbacks'.

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Action Alerts PLUS is long AAPL.