The long and the short of Apple and Baidu (August 12, 2015)
I want to talk about Apple ( NASDAQ:AAPL ) and Baidu ( NASDAQ:BIDU ). I featured Apple ( NASDAQ:AAPL ), and I think Baidu ( NASDAQ:BIDU ) too recently; and I did post a really short article in “Real Money” today about Apple ( NASDAQ:AAPL ). Here’s the thing, you have to decide on what your time frame is. This has actually been a pretty decent trading stock for long and short trades.
Lets look at this, look at the weekly chart. Do you see anything bullish about this? If you do you’re probably long Apple ( NASDAQ:AAPL ), and hoping for a miracle. Just keep this chart in mind. Baidu ( NASDAQ:BIDU ) had a similar deal where it traded up over the 200-day moving average and then once it started drifting below it really took off. Lets look at this on the daily chart and you can really see what I’m talking about. A move up drags the 50-day moving average up and then gradually we get a crossover. You’re about to see the same thing with Apple ( NASDAQ:AAPL ).
Today the stock got a really nice bounce, like I said; I flipped my positions because they’re short-term. I had mentioned this to our “Stock Market Mentor” peeps the other day, that what you want to see if you want to short Apple ( NASDAQ:AAPL ), and I do, but only if it gives me the right entry. I’ve got nothing against Apple ( NASDAQ:AAPL ), that’s my iPhone right there. I love my Apple stuff, except the new music thing.
But I’m waiting for the setup and so what I’m hoping is that we get a move to $120.00 somewhere right around the 200-day moving average. You get that for a few more days and then you’re going to get this death cross, which actually happened in the Dow Jones Industrial Average just yesterday; I saw an article about it somewhere. I was talking about the transport one ages ago, so none of this should be a real surprise to you if you’ve been here.
But with Apple ( NASDAQ:AAPL ), look for a short-term rebound; but I’m telling you man, don’t be a true believer in this. I’ll say this; I say it all the time because it’s always true. I could be wrong about this, and Apple ( NASDAQ:AAPL ) is, as some would folks say, it’s really, really cheap. Okay it could be really, really cheap, if it had a spurt in it’s growth rate, but that’s not what the chart is telling us.
What this chart is telling me is, we’ve got a lot of pain, a lot of cheerleaders up here around 130.00ish and a lot of those folks, I think, when the stock gets up here, are going to be happy to sell you their stock. So I want you to be careful about Apple ( NASDAQ:AAPL ). Don’t be shorting it now, it’s a much-loved stock, just let the stock do what it does. I’m telling you, if it gets up into the 120.00’s and starts failing at all, that’s when you want to pounce in this on the short side either through buying puts, selling call spreads or just flat out shorting the stock.
Ultimately, look how much Baidu ( NASDAQ:BIDU ) came down. Who would think that it would do that? It’s China’s biggest search engine. Again, I just want you to be careful. Just know that this is a real jiggy market right now, up and down. You’re going to get some follow through tomorrow, that’s the way it always is, but right up here still is where resistance lives so this is going to have to work really hard to punch out above there.
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