What’s Behind Apple’s Unusual Activity?
Just as Apple reached its lowest point in almost seven months, the stock bounced back Tuesday. If the stock has been struggling for so long, why are the shares rallying now?
According to Cramer, it’s more than just the rumor about Apple's [AAPL 325.30 9.98 (+3.17%) ] iPhone 5 possibly coming out in August.
“When we see stocks bounce that’s usually because the people who have been playing the trend recognize that there are some buyers at a certain level,” he said, “and then the trend followers who have been shorting… realize they have to cover.”
I was concerned that Apple's stock continuously dropped. I did not watch the stock market before this project but I chose Apple because I thought that their stock would go well and continuously grow throughout the summer term because Apple as a company is thriving and doing so well. I was caught off guard when the stock dropped day after day. A nearly 10 point increase is a huge jump compared to the slight drops that have been happening everyday. I don't know the cause, but I agree with the article that it probably doesn't have anything to do with the iPhone5 supposedly coming out in August.
Stock prices for closing 6/21/2011: