If Christy Turlington wasn’t enough to move this stock, is it still a buy? (March 10, 2015)
Apple ( NASDAQ:AAPL ), the addition to the Dow Jones, please look at me, Average, was a bust for Apple ( NASDAQ:AAPL ); it just was what it was, which wasn’t much. Then Tim Cook’s presentation of the watch with Christy Turlington, who was a big hit with me, didn’t really work either. Keep in mind that a lot of this move here has been in anticipation of this watch. I have no feeling about whether this watch is going to be great or not. I know it certainly intrigues me so I’ll definitely be looking at it, whether I’m going to buy it or not I don’t know.
The reason I’m telling you this is, I doubt I’m the only guy that’s saying, “It’s intriguing to me, I’ll take a look at it, I might buy it and I might not.” I’m not the guy that’s going to sit there in line in New York City in the freezing cold around the big square apple there on the Central Park corner across from the Plaza. I’m not the guy that’s going to sit there for three days so I can be first in line to get my watch; I have a job so I can’t do that. My point is that the response to this just from the market has been pretty tepid, so you have to respect that.
If you can’t wait for the new watch, great, you’re the one, good luck sitting there in front of the store. My point is this, there’s reality and this is reality, or there is perception and that would be like what you’re thinking. So don’t just sit here and be a fan of Apple ( NASDAQ:AAPL ). Now with that said this is how I would suggest trading it. First of all the stock’s in an uptrend, don’t short this thing, just don’t short it. The time for shorting it was here at 130.00, now it’s five points lower, you probably want to start to thinking about covering your short.
Instead I would do this, I might have already done this but I’m going to do it again. I want to set a price alert because the way this thing is trading, and it’s starting to pick up momentum, this is going to test 120.00. If it doesn’t hold at 120.00 it’s still okay, because the last set of lows was down at 105.00. So look at this, just think about this because I’m trying to give you a sense of how this thing really trades. Look at the lows, low, low, low, low, low. I guess you could say these are lows, oops a lower low; all of these were higher highs, a breakout, a big move higher, a lower low, lower low still, lower low, pullback, now another breakout.
Here’s my point, the stock could come all the way down to here and as long as it doesn’t go to there it’s still a higher low; you can kind of start connecting this line. So Apple ( NASDAQ:AAPL ) can fall from 125.00, it can fall basically 20 more points, which is pretty uncomfortable if you bought right up here. It can fall another 20 points and still the uptrend is intact, it’s not even in to question at all; it can fall to $100.00, the uptrend would be in question, but my bet is, because it’s still Apple ( NASDAQ:AAPL ), it could fall to $100.00 and it would be a great buying opportunity, but at 124.00 not so much.
I would just suggest that you stay away from this. Also, laugh factor, people talking about Apple ( NASDAQ:AAPL ) buying Tesla ( NASDAQ:TSLA ). Can you think of something dumber than to buy a company; I mean they make great cars, I know from first hand experience, but can you think of anything dumber than to spend a bunch of cash, like dollar bills, on a company whose stock is starting to roll over and they’re continuing to hemorrhage cash? So that would be one of the dumber things that Tim Cook could do. And by the way, I don’t think that Tim Cook has done a lot of dumb things. Far be it for me to even criticize a guy like that, he’s the CEO of the largest company in the world.
My point is this, don’t buy into that crap, don’t buy into Tesla ( NASDAQ:TSLA ), don’t buy into Apple ( NASDAQ:AAPL ) right now. At 120.00 maybe, at 110.00 maybe, really strongly consider it at 100.00, back up the truck load the boat.
Free Chart