Apple & Tesla: No More "Last Man Standing"
Well, here we go again - which probably shouldn't be a surprise given we're in a bear market/correction/whatever-we-want-to-call-it...
- Nasdaq: -4.5
- S&P 500: -3.8%
- DJIA: -3.4%
- Russell 2000: -3.6%
Bear markets grind up our emotions, blah blah blah - you know this stuff if you read my emails often enough. My point is that the last part of a downturn like this one is the toughest, emotionally and financially.
You're not alone. I'm right there with you, and know exactly what you're feeling right now.
The good news is that I continue to believe we have a potential bottom ahead in late June - the lead-up to July 4th weekend. I think we're still on track with the pathway lower..the idea of a "declining wedge"...that I've sketched out in recent emails to subscribers:
"Last Man Standing"
The trading action in Tesla (TSLA) and Apple (AAPL) make today's deep selloff particularly interesting.
Both have been fairly resistant to the tech bear market, and were the proverbial "last man standing" (or women, if you prefer).
As recently as the end of March, Apple was very close to an all-time high - before plunging lower over the past 6 weeks. It's down 5% today, and if it closes at the current level would be its lowest price of the year:
Likewise, Tesla shares were also very close to all-time highs in late March before reversing lower. The stock is down 7% today and could well finish at its lows of the year when they ring today's closing bell:
If Tesla and Apple shares continue to head lower - that's the signal we need that the last stalwarts, the most enthusiastic of investors in the past few years, are likely throwing in the towel.
Yes, it's going to be a bumpy ride in coming sessions. Likely, we're going to see some dramatic "ups" and a lot more "downs."
But we'll get through it together, with our portfolios and confidence intact.