Apple Inc's Recent Rally Faces Potential Turbulence

According to a note from BTIG, Apple Inc's (NASDAQ: AAPL) recent rally might encounter difficulties in the coming year. The company, which is the largest in the world, has experienced five consecutive weeks of gains exceeding 2%, a phenomenon not seen since 2010.

Historically, such performance streaks have led to subsequent weak results. BTIG highlights that Apple’s average one-month return after similar rallies since 1990 has been a negative 6%, with only one positive return in 2009.

The analyst suggests that ongoing discrepancies in the market, rising U.S. dollar strength, and increasing 10-year yields—now near year-to-date highs—could impact large-cap growth stocks like Apple.

With Apple's market cap approaching $4 trillion, caution is advised as January approaches amid broader market challenges. While the S&P 500 shows signs of closing strong and potentially surpassing 6100, BTIG warns of downside risks with increased market volatility in the new year.

The note concludes, "If the S&P 500 does make new highs, there will likely be significant divergences in breadth and momentum, raising concerns as we enter January."