Support 12% Away
Johnson said Apple is a "great company" but the charts suggest it's not a "great stock" at this time. Shares of Apple experienced a "parabolic" mover higher over the past year or so and if history is any indication, when charts go up at a "very steep ascent" the reversal can end "badly."
Apple's next level of support is roughly 10% to 12% below current levels and if reached, it would implied a peak-to-trough correction of 20% to 25%, Johnson said.
"At that point in time, we think there's good footing on the stock," Johnson said. "We'd step up and be buyers of Apple at that point."
Sellers Before The Fall
Laffer Tengler Investments CIO Nancy Tengler also said on the "Trading Nation" segment she has been a seller of Apple's stock at a time when Wall Street analysts were turning incrementally bullish. Before jumping back in again, Tengler said the stock needs to "come back a little bit further"
"I think the company has a lot of levers to pull," she said. "I would wait for the stock to pull back a little bit and then I'd be stepping back in and expect a big dividend increase next quarter."
Apple's stock traded around $260.96 per share at time of publication.