Mark Dow Says $AAPL’s Momentum is Broken and the Stock Could See $425

“Apple fell under $500 in pre-market trading this morning.

It could continue to drop says trader Mark Dow. When a stock loses its momentum, you can throw out the fundamentals, says Dow. Based on a simple technical analysis, he believes it could slide all the way to $425:

While I’m here, let me make a quick, behavioral point on AAPL. AAPL has been THE story stock in the market over the past few years. It has been our collective obsession. It has sucked all the oxygen out of every financial chat room and could do no wrong. I can’t speak to the fundamentals, which may or may not have changed, but I do know this: once the fever breaks on a story that is so beloved, sentiment usually doesn’t stop deteriorating until the pendulum has overshot to the other side. And I get no sense we are near that point yet. I still see virtually all knife-catchers and no momentum shortsellers, and until this changes, it is probably not safe to buy the fruit….”

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