Want to Buy Apple? Think Again.

DELAFIELD, Wis. (Stockpickr) -- Calling all value investors, your beloved Apple (AAPL) is in trouble technically here. Big trouble.

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By now, everyone knows the bullish case for shares of the iPhone and iPad maker. The company has over $160 billion in cash on its balance sheet and trades at a very cheap valuation at just 12 times trailing price-to-earnings and 11 times forward price-to-earnings. Apple is rumored to be set to release its new iPhone 6 later this year, and a new product, possibly the iWatch, is on the docket for later this year. Those attractive fundamentals just don't matter right now, since shares of AAPL are breaking down big time from a technical standpoint.

I know that's hard to stomach for fundamental investors who are in love with Apple. They don't want to believe that such a cheap stock with so much cash for acquisitions and dividend increases can be in trouble here. But supply and demand is what moves stocks, and those dynamics can be driven by a variety of reasons.

One reason is the technical shape of a stock. Technicals are often a leading indicator to the future fundamentals of a company. What I mean is that the way a stock acts technically often front runs the coming fundamental news. Could it be possible that AAPL has some fundamental news on the horizon that the market isn't going to like? If you're not considering this, then you're just ignoring how bad AAPL is acting from a technical standpoint right now. Apple is due to report earnings on April 23 after the market close. Considering how shares of AAPL are acting right now, I would say it's a strong possibility that somebody knows the company is going to report a weak quarter.

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