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Apple ‘Lows Are In’: Larry McDonald

Tuesday, 30 Apr 2013 | 5:52 PM ET
Apple 'Lows Are In': Larry McDonald
Tuesday, 30 Apr 2013 | 5:05 PM ET
Apple's move to issue $17 billion in debt could be signaling a low in its share price, Larry McDonald of Newedge says.

Apple's move to issue $17 billion in debt could be signaling a low in its share price, Larry McDonald of Newedge said Tuesday.

"Well if you think about it, since Greece, Spain, Italy and all of these investment-grade credits have dropped out of the triple-A, double-A ranks, in the world, the amount of paper – on the planet Earth – that is double-A-plus or better is down 60 percent since Lehman," he said.

"So, companies like Apple are just coming to the market with this amazing strength because they're dealing with strength. There's not enough high-quality paper out there, and they're just completely taking advantage of it."

McDonald made the comments hours after Apple announced that it would issue $17 billion in debt.

(Read More: Apple Bonds: 'Market Is Going to Be All Over It')

On CNBC's "Fast Money," McDonald said that the market could be setting up a floor because of easy money policy from the Federal Reserve.

"Somewhere below us, there's some type of a fixed-income bond floor that's forming," he said.

(Read More: Apple as Top Yield Play: Dan Niles)

Technically, shares of Apple were "in a bad spot," McDonald said, citing seven different bear-market rallies.

"In the short-term, it's made a heck of a move," he added. "The lows are in."

Trader disclosure: On April 30, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long F; Tim Seymour is long AVP; Brian Kelly is long TREASURIES; Brian Kelly is long GILTS; Brian Kelly is long BUNDS; Brian Kelly is short S&P; Brian Kelly is short DAX; Brian Kelly is short CAC 40; Brian Kelly is short FTSE 100; Dan Nathan is long CSCO MAY 21 STRADDLE; Dan Nathan is long JNJ MAY 85 PUTS; Dan Nathan is long QCOM.

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