Analyst: Why Buying Apple Here Makes 'Very Little Sense'

Eagle Bay Capital Founder JC Parets said today that he thinks buying Apple Inc. AAPL "makes very little sense" from a big picture, long-term perspective. Parets said that the chart is misleading because on a short-term timeframe, the chart looks to be in a bullish continuation pattern. However, the stock has traded within that pattern for quite some time, causing Parets to argue that if the stock were going to move higher, it would have by now. Instead, Apple has "gone absolutely nowhere."

Instead, Parets is looking at a long-term trend channel that has constrained the stock. From that perspective, "Apple is a terrible buy here."

Parets analysis is also based on Fibonacci levels. "If you're not looking at these Fibonacci levels, you're doing yourself a disservice," Parets said. Whereas in January, Parets was looking for Apple to move higher – from the $110 level towards $129. The stock hit that level, even pushing as high as $134.54. Now, the stock is mired at $127.80.

A break lower, Parets argued, would have negative implications. It would be "very, very bad," he said. As Apple is such a large component in many of the indexes, it may also have negative implications for the broader market.

Year to date, the stock has done quite well, gaining 15.8 percent versus a 8.4 percent increase in the Nasdaq 100.