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Cramer: Apple's chart is the worst in the book, but I'm not selling

One of Jim Cramer's Twitter followers asked him on Monday night if he is turning on Apple, and he took it personally. Just because the charts for the stock look gloomy, that doesn't mean he is ready to trade it.

"I said on air that Apple's chart was the worst in the book," the "Mad Money" host said.

Before the news broke that the European Union slapped Apple with a $14.5 billion tax bill, Cramer saw that the charts for Apple were struggling. The technicals for the stock suggested that it was ready to plummet.

Thus, Cramer already predicted that Apple would get hit with a giant tax bill based on the chart, and acknowledged this on air. He just did not have the foresight to know the stock would get hit off the news when it broke.

"I was just looking at the chart, and it was terrible. Oh, and it remains terrible," Cramer said.





Tim Cook, CEO, Apple
David Paul Morris | Bloomberg | Getty Images
Tim Cook, CEO, Apple
"In the end, telling you to sell off the chart would be telling you to do exactly what I have spent ages begging you not to do: it would be telling you to trade it." -Jim Cramer

Yet, Cramer's view remains unchanged. Own Apple, don't trade it, despite the massive potential tax bill.

How could he not turn on the stock if the chart is bad?

"Go back to when Tim Cook came on the show back when Apple was at $93. The stock looked terrible. If you sold it then, you would have missed a terrific run," Cramer said.

Cramer acknowledged that yes, Apple's stock does look like it's rolling over and $14.5 billion would be a big overhang. Additionally, the iPhone 7 launch does sound uninspiring to him. And in his experience, when a chart exhibits a pattern as horrendous as the one for Apple's stock, it's hardly ever wrong.

There are still many things that could happen for Apple, though. It could take up Cramer's suggestion and buy Sirius XM and bolster its service stream, or the iPhone could prove better than expected. There could be news that breaks that no one has even thought of yet.

"In the end, telling you to sell off the chart would be telling you to do exactly what I have spent ages begging you not to do. It would be telling you to trade it," Cramer said.

After all, he's not in the hedge fund business anymore. So, for those investors that want to trade Apple and sell based on the chart, Cramer said to go for it, but few know when the stock is done going down to get back in.

"Can you be nimble enough to get back in before the rebound starts? I know I'm not that good. Few are, which is why I always say own Apple, don't trade it," Cramer said.


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