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Kensho Stats

History shows hot Apple stock due for a breather

Apple fans from Eastern Europe camp out in front of the Berlin Apple store ahead of the sales launch of the new Apple iPhone 7 on Sept. 15, 2016 in Berlin.
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Apple fans from Eastern Europe camp out in front of the Berlin Apple store ahead of the sales launch of the new Apple iPhone 7 on Sept. 15, 2016 in Berlin.

Apple is on quite a tear this week, up more than 10 percent in four days on strong iPhone 7 preorders. Can it last?

CNBC PRO used Kensho, an analytics tool utilized by hedge funds, to see what happened after the tech giant jumped more than 10 percent in four trading days over the last decade.


The shares usually decline on the fifth day, falling by 0.8 percent on average and trading negatively more than 60 percent of the time.


One week after a four-day surge, Apple, on average, lost 0.7 percent. However, it did manage to trade positively more than 60 percent of the time.


One month out, the stock also averages a negative return.


So bottom line, history shows after a spurt of this magnitude, it may be time for Apple to take a breather.

Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.