Apple (AAPL) still falling from the tree? Here’s your plan. (March 04, 2013)
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I’m Dan Fitzpatrick at Stock and OptionMarketMentor.com on Monday, March 4th. This video is not going to take long, but I wanted to cover Apple ( $AAPL Apple Inc ) because I’m getting a lot of emails from folks asking if it’s time to buy Apple ( $AAPL Apple Inc ). Here’s the thing, a lot of traders get sucked into trading last year’s superstars, this year. It’s not kind of unlike the owner of a sports franchise who buys that aging superstar in order to kind of pack the stands a little bit. But guess what? They tend to not pay top dollar for them because they really know what they’re getting. They’re buying them for other reasons, like increasing attendance or maybe to eke out that one or two good seasons out of them. Well, here’s the thing; you don’t have to do this with the market, you don’t have to do this with Apple ( $AAPL Apple Inc ), because there are an infinite number of stocks you can buy and own other than Apple ( $AAPL Apple Inc ). Try that, try that, I mean the hits just keep on coming. We can do one of these, how about one of these, even one of these? How about this? How about this? I mean the hits keep coming; you can buy any of those. But instead you’re buying Apple ( $AAPL Apple Inc ), why? Well let’s look at the weekly chart. Oh my gosh, this has been a superstar for years. Problem is, it’s not now. This is that head and shoulders and unless you’re brand-new to me, you just haven’t heard of me before, in which case, Hi! How you doing? You know that I’ve been bearish on Apple ( $AAPL Apple Inc ) for quite awhile and I’ve said before and I’ll say it again, “I’m no prophet,” I just look at these patterns and this has been a classic head and shoulder pattern. I don’t really know, actually, why more folks haven’t been talking about that or weren’t talking about that when Apple ( $AAPL Apple Inc ) was hitting $500.00. Instead we were getting all the fundamental arguments and although they got this and they got the Apple Dick Tracy watch coming on and they got the iThis and the iMicrowave and the iTennis shoe, but all the while the stock was trending lower. So I don’t get that, but I will tell you this, I get this, that was a test of $500.00, do not buy this falling knife. The next logical buy point is at $400.00, I mean that’s typically where you’re going to see the stock bounce. Why? Well, because it’s the Roman numeral system and we gravitate to even numbers like $500.00. This stupid stock bounced around there for what seemed like forever; so look for $400.00. Now are you going to buy it there? I’m still looking at the old falling knife here. What I would be doing is, just steer clear of Apple ( $AAPL Apple Inc ), I mean if you want to buy Apple ( $AAPL Apple Inc ) go to an Apple ( $AAPL Apple Inc ) store and buy something. Now members get over to the Strategy Session; I got a lot of stocks that I’m covering and we’ve got some stocks and some real strong uptrends so I definitely want you checking that out. Free Chart