3 Odd Things About Apple Stock's Unlikely Winning Streak
Apple (NASDAQ: AAPL) shares are rolling again. The world's most valuable consumer tech company has closed higher for eight consecutive trading days, a run that Investor's Business Daily points out is Apple's longest winning streak in nearly three years.
You have to go back 35 months to find the last time Apple has pieced together a longer run without a down day, and that nine-day streak includes a day when the stock closed unchanged -- making the current string even more remarkable. It's easy to get excited over consistent upticks, but let's frame this event in its proper perspective. Let's go over a few things that seem a bit unusual about the staying power of this month's winning streak.
1. The overall gains haven't amounted to much
Investors haven't exactly made a killing during this eight-day run. Apple stock has moved 5.1% higher through the streak, so we're talking about a string of bunt singles. The stock has only posted a daily gain north of 1% just once in that span.
One can argue that the mere 5.1% move through eight winning days isn't a surprise. It's usually sharp moves higher that attract profit taking. The nine-day streak from three summers ago resulted in just a 5.8% gain. It's the quiet rallies that last, but it's still a point worth making.
2. Apple's been climbing a wall of worry
The market's been inching higher during Apple's run. The S&P 500 has risen in six of those eight days, climbing 2.1% along the way. The market's been conducive -- it rose in seven of the nine days during Apple's 2014 streak -- but all of the Apple headlines over the past few haven't been positive.
Chatter continues to build about delays for the high-end OLED model of the upcoming iPhone 8. Even some bullish analysts are conceding that the device won't launch until October, after its historical rollout month of September. Some sources are pointing to a November or December launch, and initial availability is expected to be scarce.
Another potential pothole is a report that the wireless charger Apple is expected to introduce with the iPhone 8 will ship separately and may be late. There's also a story making the rounds about software issues with the new smartphone. With analysts scaling back targets for the current fiscal year, it's a real surprise that the bears haven't been able to swipe a day from the bulls over the past two weeks.
3. Fresh financials are just around the corner
Apple is now less than two weeks away from announcing its fiscal third-quarter results. Sustainable rallies after earnings -- like the mid-August 2014 run -- make sense. All of the cards are already on the table. Consistent gains in the days leading up to the report is a harder feat.
This eight-day winning streak may make for scintillating headlines, but it's more coincidental than fundamental. Apple has two weeks to justify its recent gains, and that's when the real streak that matters will start.
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