Is this the "iNinjas Indicator"?
Smart Investors and Traders use indicators to tell them what the market is going to do. When the entire market is in a correction, heading down, an often used indicator is publications like the NY times, Time magazine, etc. News publications that are not market-centric. When those publications front page, or cover story is how bad the market is doing, it is more often than not a sign of the "bottom" The point at which the market turns upward. It is a contrarian indicator. When main stream media ques into the markets weakness, it is often a good time to go the other direction.
Apple has been taking it on the chin for months, since October when they disappointed with the iPhone 5. Is this now an indicator that the bottom is in?
See where the purple line crosses below the green line late in 2012? That is called a "Death Cross
" That is where the 50-day moving average crosses below the 200-day moving average
Here is the 2-day showing the big drop after they disappointed with their earnings report and forward looking guidance
Personally I think there are a few more points to the down side before we see bottom. Expect a bounce up tomorrow after this huge drop, even the markets follow the laws of physics. Tomorrow the value funds will want to open new positions at this level and will probably out weigh those disgusted with the performance of their once beloved treasure, but that will not last. I think there are more people to throw in the towel with AAPL. People hold the company to a higher standard. The same is true of its investors. They love to sing its praises when it defies the rest of the market and rises while the rest fall, but are just as harsh, when it under performs, and does not "knock it out of the park"
Is the company dead? No
Is the stock broken? Maybe
If you are not invested in apple, these levels are ok to start taking nibbles. Buy more as the price comes down