Warren Buffett’s Berkshire Hathaway Inc shrank its Apple Inc. (NASDAQ:AAPL) stake to 249.6 million shares from 252.5 million shares in the fourth quarter
Prominent hedge fund managers sold out of Chinese technology stocks and dumped Silicon Valley majors such as Apple Inc and Facebook Inc while global stock markets cratered during the fourth quarter, according to securities filings released on Thursday.
Activist hedge fund Jana Partners sold out of its position in major Chinese e-commerce company Alibaba Group Holding Ltd and reduced its stake in Apple by approximately 175,000 shares, slicing its position in the company by 63 percent.
Warren Buffett’s Berkshire Hathaway Inc shrank its Apple stake to 249.6 million shares from 252.5 million shares in the fourth quarter. Buffett’s assistant Debbie Bosanek said in an email to Reuters: “One of the managers other than Warren had a position in Apple and sold part of it in order to make an unrelated purchase. None of the shares under Warren’s direction have ever been sold.”
Soros Fund Management and David Tepper’s Appaloosa Management sold out of their stakes in Apple.
Third Point LLC sold all of its shares of Alibaba and in streaming company Netflix Inc, while reducing its stake in payments company Visa Inc by approximately 200,000 shares, or about 11 percent of its prior position.
Omega Advisors, run by billionaire Leon Cooperman, sold all of its approximately 88,000 shares of Facebook and reduced its stake in Google-parent Alphabet Inc by approximately a third by selling approximately 47,600 shares.
The moves came during a volatile fourth quarter in which fears of slowing economic growth pushed the U.S. benchmark S&P 500 index to the brink of a bear market while stock indexes in China and Germany finished the year down 20 percent or more.
Since then, shares have rebounded sharply on a broad global rally powered by hopes of a new trade deal between the United States and China and the Federal Reserve’s decision to slow its pace of U.S. interest rate hikes.
Alibaba is up nearly 23 percent since the start of January, while Netflix is up nearly 34 percent over the same time. Those gains helped power the average hedge fund in January to the largest monthly gain since September 2010, according to Hedge Fund Research.
“While investor optimism dominated in January, significant macroeconomic uncertainty still exists, increasing the likelihood that recent trends toward elevated realized volatility will remain and continue to drive industry performance,” said Kenneth J. Heinz, president of HFR.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 183.52.
The projected lower bound is: 157.77.
The projected closing price is: 170.64.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
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 39.5098. This is not an overbought or oversold reading. The last signal was a sell 4 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 59.99. 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 buy 28 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 40. This is not a topping or bottoming area. The last signal was a sell 5 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 32 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 0.620 at 170.800. Volume was 46% below average (neutral) and Bollinger Bands were 4% wider than normal.
Open High Low Close Volume___
169.710 171.262 169.380 170.800 21,835,748
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 170.88 161.35 191.64
Volatility: 24 52 39
Volume: 27,166,952 39,973,716 33,357,456
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 10.9% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 14 periods.