Bad news for the market: Apple stock has broken down

In an ominous sign for the market, Apple (–4.68%, $139.60) stock is in a world of hurt, trading now below a price that investors couldn’t resist before — a price that sent it higher in the past several months.

Barron’s:

After Wednesday’s trading, Apple lost its No. 1 ranking as the world’s most valuable company to Saudi Aramco, the energy giant backed by Saudi Arabia.
But perhaps even more disturbing: It’s an ominous sign for the market.
Since early November, Apple shares have found a bottom at $150 each, an amount that drew investors in. They didn’t buy, though, at $150 this time.
And their decision to stay on the sidelines makes it much tougher to know where that bottom price is—and much easier to think that stock will just keep dropping. Shares are already down more than 21% for the year.
No wonder if investors are unsettled. They think: If Apple can’t hold the line, how can the broader market fare much better or even as well?
“It is a troubling sign when investors sour on best of breed names in an already difficult tape,” wrote Nicholas Colas, co-founder of DataTrek. “AAPL’s move today is one more reason we remain very cautious on stocks.”

MacDailyNews Take: For those who can keep their heads, times like these are a gift.
If the panicky want to give us a sub-$135 (or even better) entry point, well, then: “Thank you very much!”
As Warren Buffet says:
Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.
Whether we’re talking about stocks or socks, I like buying quality merchandise when it is marked down.
Be fearful when others are greedy. Be greedy when others are fearful.
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