CNBC has done it again. What do we consider one of the best contrarian bullish signals? When “experts” get bearish in the midst of a major uptrend. That’s exactly what we have going on in shares of AAPL. Check out the following quotes from this CNBC article.
“There’s are a lot of pressure on Tim Cook and Apple. ”
-Jon Najarian optionmonster.com CNBC ‘fast trader’
“I also think the play is short Apple, I suspect the next big move is to the downside.”
-Joe Terranova CNBC ‘fast trader’
As for the next big move being “to the downside” as Terranova puts it, we consider the $20 drop on Monday in AAPL a big move already. In our opinion, anyone looking for much more than a 3-5% pullback (that translates to a price between $517-$506) is going to be disappointed. We’re not saying AAPL won’t continue its high volume down move that started Monday, but bulls should welcome any bears, be it short term or long term.
Now in Najarian and Terranova’s defense, they are short term traders so perhaps they don’t expect as a big move down as the CNBC article would lead you to believe. However, that’s just our point, CNBC is choosing 2 quotes (both very bearish) and clearly presenting a bearish bias and only a bearish bias. Furthermore, there are no targets given at which either trader says to get long, or what might change their opinion (which we hardly believe they didn’t explain further on the action ‘fast money’ show).
This is just another example of CNBC adding fuel to the fire for a potential short squeeze in AAPL. A short squeeze, by the way, would be just another catalyst that could propel shares of AAPL even higher. Again, AAPL bulls should welcome this journalistic manipulation by CNBC as it makes the long term picture for AAPL that much more attractive. Moreover, the short term picture improves as well. If everyone was screaming “buy the dip” on AAPL right here that would be a bearish sign, but that is not the case.
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