Tuesday, 18 December 2012

Sensationalism

If ever proof were needed that financial journalists are biased, stupid or both the Telegraph has a wonderful confirmation out today.

The subheading reads;

"Apple's share price has dropped below the $500 threshold for the first time since February, fuelled by fears that the world’s biggest company is starting to lose its shine."

This sounds bad - perhaps a clear technical support has been broken? The stock falling is fuelled by fears! ooooh! But wait the facts lie below;

"Analysts warned Apple could be losing momentum as it briefly slipped as low as $497 in pre-market trading. It returned to $508.92 before the markets opened and closed at $518.83."

In what way is this article not misleading? The stock closed up 1,77% and traded in illiquid premarket at $497. I love how journalists are always the last to the party on these stories right behind my favourite lagging indicator; the sell side analyst (of which she quotes plenty).

It is pretty obvious that any darling momentum stock that consistently beats earnings will one day dissapoint. But never fear because Katherine Rushton is there to stick the knife in a twist the actual facts to support her bearish conclusion. Misrepresenting opinion for fact. Who would have thought it?

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