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Apple Closes More than 3 Percent Lower Wednesday

It was a bad day for Apple (NASDAQ: AAPL) on Wednesday. The stock ended the trading day down nearly 3.4 percent after it was revealed that Julian Robertson, head of Tiger Management, recently sold the balance of his Apple position. Investors, professionals and individuals alike, buy and sell Apple every day so why is this liquidation important?

Robertson was known as one of the last hedge fund managers that were holding on to their long Apple position. Most have already sold the stock that was known as the hedge-fund-darling for years. Robertson disclosed that he sold more than 41,000 shares. This was the news that started the Apple sell off on Wednesday.

Investors can’t blame the recent downturn on Robinson. The stock reached a top of $463.00 and has since retreated. On Tuesday afternoon the stock violently went lower–so much that during regular CNBC coverage, the move was reported as breaking news.

It was later revealed that a key pivot point of $450.50 was breached causing the stock to move lower. It continued lower throughout the rest of the day.

On Wednesday, the stock once again had the attention of traders as it neared the key 50 day moving average as a support level. Once the stock fell below that level, it quickly sold off. It reached as low $422–4 percent lower on the day and $10 below the 50 day moving average.

There was a glimmer of hope towards the end of the day. After being down more than 4 percent, the stock rebounded 1 percent towards the end of the day. Because there is little support under the 50 day moving average, the fact that it rebounded even a little might suggest that there might be a buy on the dip mentality. Apple bulls will hope that’s the case.

If it continues lower, it may challenge its lows but let’s not talk about that.

Disclosure: At the time of this writing, Tim Parker was long Apple.

[stock-tools exchange="NASDAQ" symbol="AAPL" image_height="180" image_width="300"]

 

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