The price action in shares of Apple is trying to tell investors something, Drakon Capital's Guy Adami said Tuesday on CNBC.
On "Fast Money," Adami urged a look at what the stock has done since the company introduced the iPhone 3GS on June 19, 2009.
"It's all about the price action," he said. "The price is trying to tell you something."
Adami, noting a double bottom in the charts and a bump from there, said, "I think it overshot. I think it's doing exactly what it's supposed to be doing, and we might see lower from here."
Hedgeye Risk Mangement's Keith McCullough pointed out another factor.
"If you show me a company where the top line is slowing and margins are compressing, the multiple's going to compress," he said. "Now, that doesn't hold all the time. For a stock like this that's widely held, it's most likely going to happen that way."
Dennis Gartman of The Gartman Letter discounted the premium of the Apple brand.
"If somebody put that chart in front of you and didn't tell you what it was, you wouldn't be buying it. You'd look at that and say that rally is something to be sold," he said.
"Apple has a great name. When you look at the chart, it's a completely different story."
Trader disclosure: On Dec. 4, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long on BAC; Tim Seymour is long on INTC; Tim Seymour is long on SBUX; Dennis Gartman is long on S&P; Dennis Gartman is long on MAT-OAS; Dennis Gartman is long on AUSSIES; Dennis Gartman is long on CAMS; Dennis Gartman is short on 10-year MOTES; Dennis Gartman is short on CRUDE; Dennis Gartman is short on YOM; Keith McCullough is long on XLU; Guy Adami is long on C; Guy Adami is long on GS; Guy Adami is long on INTC; Guy Adami is long on MSFT; Guy Adami is long on NUE; Guy Adami is long on BTU; Guy Adami is long AGU.
This rally is about fundamentals catching up, says Paul Richards of UBS, sharing his concerns about the market's outlook. And the FMHR crew weigh in.
Colbert Narcisse, Morgan Stanley Wealth Management, explains why he is watching for opportunities in private markets, and the importance of recalibrating asset allocations.
Highlights from the "Fast Money Halftime Report," featuring CNBC's Scott Wapner and the FMHR traders.