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Apple Is a Bad Investment

Stocks in this article: AAPL IVV ICF JNK IAU QQQ

Investor interest: Those 57 Wall Street analysts have issued 22 strong buys, 28 buys, 5 holds, 1 under perform and 1 sell recommendation to their clients. They predict that investors could see a total annual return as high as 18.50% over the next five years. An amazing number of individual investors have expressed their opinion on Motley Fool, where 28,944 readers have given a 92% vote of confidence that the stock will beat the market.

Short sellers have a contrary view and short interest has grown from 10 million shares at the beginning of the year to more than 21 million shares recently. Institutional investors have lowered their holdings.

Conclusion: At the present place, we are in the investor time continuum where AAPL is no longer a core growth stock that can be analyzed using fundamental analysis. While analysts argue if the company is a software, hardware or retail company, investors are selling their shares and technical traders who trade the S&P 500 Index ETF (IVV), Realty Majors Cohen & Steers ETF (ICF), SPDR High Yield ETF (JNK) and the Gold Trust ETF (IAU) all based on price movement patterns have added Apple to their trading portfolios, as if it were the Nasdaq 100 ETF (QQQ). At this point in time, I'm looking at the price patterns of AAPL to decide when to buy/sell/short and forgetting to read the earnings reports and SEC filings.

One day this stock may again be able to be evaluated by fundamental analysis, but that day might not come till value investors believe the P/E is low enough. My star in the east will be when Warren Buffett begins to accumulate shares of the stock. Till then, I'll monitor the moving averages and turtle channels and let the trend be my friend:

At the time of publication the author used AAPL, IVV, ICF, JNK, IAU and QQQ in his personal and trading accounts.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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