Stock Analysis: 3 Reasons to Sell Apple

(via zacks.com) Reason 1 to look at selling Apple is the market. If you believe my former employer's research, William O’Neil & Co. and founder of Investor’s Business Daily, then 3 out of 4 stocks follow what the market does. This is true but our research shows that the numbers are much higher than 75% during the heavy selloff days and during markets that are transitioning from a Bull market to a Bear market.

Reason 2 to consider selling Apple is just take a look at the chart. Apple hit new highs in April and has been trading back and forth in a 15%-20% range ever since (excluding the Flash Crash low which was much lower). On June 21, we hit a new high but that breakout failed miserably like most breakouts do in bearish markets. The rally that led up to that high was on light volume, and now the selloff seems to be accelerating on heavier and heavier volume each day.

Reason 3: everyone owns Apple. From the savviest fund managers to the novice investor. In fact, if could see inside everyone’s portfolios, I almost guarantee the common denominator stock across the board would be Apple (anyone have a good way of seeing the number of small investors who own Apple?) When everyone owns a stock, then there are no more buyers.