Why Apple fell 3.19% Thursday

Jim Cramer strikes again.

From The Street‘s Jerry Kronenberg:

Jim Cramer says investors who don’t already own Apple (AAPL) shouldn’t buy it here, but should wait instead until it pulls back some 5% to 8%.

“[Apple] has run too much,” Cramer said in an exclusive monthly conference call with members of his Action Alerts PLUS club for investors. “It’s at [around] $160, [but a] 5 to 8 percent pullback is when I would buy some if you didn’t own any.”

Cramer’s message to club members last month: Own Apple, Don’t Trade It.

13 Comments

  1. David Emery said:

    Independent of “Why does anyone care about Cramer?”, seems to me AAPL had a quite a run-up, so there was profit-taking consistent with the larger tech sell-off.

    1
    August 11, 2017
  2. Ken Cheng said:

    The whole sector was down for most of the day. From market open to about 12:30est, Apple and Facebook moved in lockstep. Did Cramer tell his newsletter to sell FB as well? It was only after 12:30 when other stocks recovered a bit that Apple seemed to go its own way. Nothing to do with Cramer as far as I’m concerned.

    2
    August 11, 2017
  3. Jonny Tilney said:

    A sensible, momentary pullback is quite OK for everyone.

    Except those who needed to realise cash today. And chose not to do it two days ago ;-(

    0
    August 11, 2017
  4. Gianfranco Pedron said:

    AAPL will bounce around the $160.00 mark for a while just like it did at $150.00 and $140.00 and so on before progressing higher after a round of positive news (which is just around the corner).

    Yep, I know all this and all I had to do was reach out and catch a few APPL shares as they were raining down from the sky yesterday … but I didn’t. D’OH!

    2
    August 11, 2017
  5. Fred Stein said:

    Apple is a Rudyard Kipling stock. “If you can keep your head when all about you are losing theirs…”

    At a forward P/E of 14.56, Apple is undervalued. But that is high for Apple compared to the last five years. So the stock may swoon, as others, “lose their heads” over any comment or short term metric.

    2
    August 11, 2017
  6. Sandro Castellaro said:

    You’re correct Philip. There was a sell-off in tech yesterday but nowhere near (with exception of Amzn and Nvda) what Aapl was down. Amzn has been on a downward trajectory since earnings so that was no surprise, while Nvda reported earnings after the bell.Cramer, whether you like him or hate him, has a great influence over retail investors.

    0
    August 11, 2017
  7. Sandro Castellaro said:

    It’s worth exploring the link between Cramer and Doug Kass, as the latter publicly (on Cramer’s RealMoney) re-initiated his rather foolish (IMHO) short position on Aapl this week.

    0
    August 11, 2017
  8. William Kortum said:

    Cramer’ s general advice has been “own Apple, don’t trade it.” I think that works. For advice on short term trades, check out Fred Schwed’s book, “Where Are the Customers’ Yachts?” (Schwed’s main premise is that none of us know the future). Your broker’s advice is likely no more reliable than his file clerk’s. But the file clerk is likely not receiving commissions.

    Just prior to the earnings report prior to the most recent one, Cramer recommended waiting for a
    pullback before buying Apple. If you took that advice: 1-You’re still waiting. 2-You didn’t participate in twenty to thirty dollars of gains. Not criticizing Cramer. He was right on buy and
    hold – maybe less so on hiring Kass.

    I think a lot of the pullback in Apple was due to warmongering statements by our fearless draftdodger in chief. The country would be well served if one of the generals counseling Trump would hand him a helmet & an M16 and send him to a zone where he could understand what war is about. Pence and other officials could fill in for him at least as competently while he’s on sabbatical.

    1
    August 11, 2017
    • Fred Stein said:

      Good insights. Warmongering be it bullets, bombs or trade wars or just inflammatory rhetoric. Or an earthquake in CA, Taiwan, or Japan. Or some unforeseen economic glitch. Or Apple could have a supply chain screw-up. All could trigger a short or long-term pull back of 5% to 25%. APPL’s chart shows it. Or AAPL may stabilize and go up. Cramer’s 5% to 8% pull back is just one possible scenario.

      0
      August 14, 2017
  9. Fred Stein said:

    Cramer makes a fake prediction, i.e. that AAPL will drop 5% to 8%.

    A) It doesn’t drop – worthless advice
    B) It actually drops exactly in the range he predicts – if so a very short term dip. (Seen many of these. – hard to catch)
    C) On the way down to some panic by foolish investors (Seen a few. This scenario would scare the naive investors who thought Cramer had a magic insight.) Better stick to Cramer’s “own don’t trade” mantra.

    0
    August 14, 2017

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