GO
Loading...

Halftime: Is Apple's Break Below $325 a Bad Omen?

On Monday traders were taking a hard look at Apple with shares trading lower despite broad gains in the market.

Of particular concern was the fact that Apple broke below $325 – the stock’s 200-day moving average to a 6-month low.

”It’s broken through this key level in a fairly dramatic fashion,” says trader Jim Iurio. "It's come back a little but not enough to make me feel positive."

And Iurio is hardly alone. The move left countless investors wondering if the technical break is throwing cold water on a stock that was once on fire.

Is Apple’s technical breakdown a bad omen?


Instant Insights with the Fast Money traders

Looking at the fundamentals trader Jim Iurio isn’t sure what’s behind the slide in Apple. “I don’t know if it's that (there's) nothing new and earth shattering in the pipeline or (if its due to) increased competition, but for some reason the market doesn’t like Apple and they’re punishing it.”

Iurio goes on to explain that the technical move says to him that the market thinks the price of Apple is too high.

Trader Stephen Weiss isn’t so sure that market has it right. ”Apple is still one of the cheapest growth stocks that we have,” he says. But that doesn’t mean he’s a buyer. “Don’t catch a falling knife.” If you’re bullish Apple like Weiss, “wait for it to bottom,” he says.

Trader Josh Brown also thinks there’s more downside. “I love the company but $320 was a pretty major technical level,” he says.

Brown wonders if there are enough buyers in the market to buoy the stock in the near-term. “Let’s be realistic there are 48 buy recommendations on this stock.” In other words, the bull case has already been made. “Who’s coming in? There’s nobody left to defend it.”

If you’re looking for a long trade Iurio suggests looking at the chart of Motorola Mobility. “That to me looks almost exactly the opposite of Apple,” he says. “It has this consolidation and now it looks like it’s breaking out to the upside.” Or if you’re interest in a pairs trade, Iurio suggests short Apple and long Motorola Mobility.

----------

FINANCIALS FALL AFTER CITI CUTS ESTIMATES

Again the financials landed in the spotlight; this time after Citi cut estimates on Morgan Stanley and Goldman Sachs as well as Bank of America essentially saying that the anemic trading volumes will hit results.

What’s the trade?

Trader Brian Kelly suggests long JPMorgan . He didn’t find the Citi report as bearish as the rest of market. "Didn't we know that trading volume isn’t great?" In other words, he thinks its priced in.

Trader Josh Brown can't get behind the big banks at all. He tells the desk, he plans to stay away from large cap names until 'we get a handle on what the regulatory stuff will mean.'


Trader Stephen Weiss says, "the regionals are where the real money is to be made." With new regulations making the cost of running a bank increase dramatically he thinks you’ll see lots of mergers among the regionals. "I wouldn’t be surprised to see Comerica merge with someone like Key Bank ," he says.


----------

CALL OF THE DAY - GOLDMAN SACHS

Faced with the bruising headwinds of high unemployment, weak manufacturing and an otherwise listless economy, Goldman Sachs has slashed its forecast for gross domestic product.

What should you make of it?

Get all the details from CNBC’s Jeff Cox. Watch the video now or click below.

Goldman Cuts GDP View to 2% as Economy Weakens



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On June 20, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (AAPL); Pete Najarian owns (C); Pete Najarian owns (MS); Pete Najarian owns (TCK); Pete Najarian owns (MOS); Pete Najarian owns (RSX); Pete Najarian owns (BEXP); Pete Najarian owns (GE); Pete Najarian owns (CROX); Pete Najarian owns (MS); Weiss Owns (KEY); Weiss Owns (CMA); Weiss Owns (TWM); Weiss Owns (SDS); Weiss Owns (COP); Weiss Owns (JPM); Weiss Owns (UUP); Weiss Owns (DVN); Weiss Owns (HK); Weiss Owns (CMA); Weiss Owns (MRK); Weiss Owns (AKAM); Weiss Owns (ETP); Weiss Owns (MS); Weiss Owns (QCOM); Weiss Owns (VZ); Weiss Owns (MRK); Weiss is Short (X); Weiss is Short (FWLT) ; Weiss is Short (FLR); Weiss is Short (SHAW)

For Brian Kelly
Accounts Managed By Brian Kelly Capital Are Long the Euro
Accounts Managed By Brian Kelly Capital Own (GLD)
Accounts Managed By Brian Kelly Capital Own (SLV)
Accounts Managed By Brian Kelly Capital Own (MCP)
Accounts Managed By Brian Kelly Capital Own (JPM)
Accounts Managed By Brian Kelly Capital Are Short (JJC)

For Josh Brown
Brown And Fusion Analytics Clients Own (GLD)
Brown And Fusion Analytics Clients Own (SPY)
Brown And Fusion Analytics Clients Own (IWM)
Brown And Fusion Analytics Clients Own (QQQ)
Fusion Analytics Clients Own (AAPL)
Fusion Analytics Clients Own (BAC)
Fusion Analytics Clients Own (GOOG)
Fusion Analytics Clients Own (GDX)
Fusion Analytics Clients Own (WFC)

For Rich Ilczyszyn
**No disclosures

GE Owns 49% Of NBCUnivesral
GE Owns 49% Of CNBC
Comcast Is The Parent Company Of NBCUniversal
Comcast Is The Parent Company Of CNBC





CNBC.com with wires.

Symbol
Price
 
Change
%Change
BAC
---
CMA
---
GS
---
JPM MLP ETN
---
KEY
---
KRE
---
MS
---
SPDR FIN SEL
---
AAPL
---

Featured

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET