On CNBC’s “Fast Money Halftime Report,” investors discussed Warren Buffett’s recent portfolio changes in Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B). Berkshire sold about 36 million shares of Apple Inc. AAPL in the third quarter, according to the most recent 13F filing.
“Buffett selling Apple is just portfolio management,” said Steve Weiss of Short Hills Capital.
The market has seen a large rotation out of tech as COVID-19 vaccine news ramps up. The sector benefitted from the so-called “stay-at-home” restrictions.
“I don’t think Buffett has conviction on getting out of Apple. It’s still one of his biggest holdings,” said Tiffany McGhee of Momentum Advisors.
If Buffett indeed plans on selling more Apple, it could cause a larger rotation out of tech as many investors follow his trades.
“Buffett’s recent sales are only indicated by his 13F as of September 30. He may have sold much more since for all we know,” said Weiss.
Apple’s stock trades around $120.23 at publication time.
Apple Inc. designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players.
The Company sells a range of related software, services, accessories, networking solutions, and third-party digital content and applications.
The Company’s segments include the Americas, Europe, Greater China, Japan and Rest of Asia Pacific.
The Americas segment includes both North and South America. The Europe segment includes European countries, India, the Middle East and Africa.
The Greater China segment includes China, Hong Kong and Taiwan.
The Rest of Asia Pacific segment includes Australia and the Asian countries not included in the Company’s other operating segments.
Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iPhone OS (iOS), OS X and watchOS operating systems, iCloud, Apple Pay and a range of accessory, service and support offerings.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 114.01.
The projected upper bound is: 128.20.
The projected lower bound is: 110.85.
The projected closing price is: 119.52.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 73.9492. This is not an overbought or oversold reading. The last signal was a sell 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 55.46. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 52 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 75. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -0.910 at 119.390. Volume was 100% below average (consolidating) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume 119.550 120.674 118.960 119.390 37,209
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 118.26 115.21 92.97 Volatility: 37 48 61 Volume: 106,017,360 137,972,256 167,357,792
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
APPLE INC is currently 28.4% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods.
Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 8 periods.