Here are two fruits that might have a place in your diet – Apple (AAPL) and Blackberry (BBRY) (November 06, 2015)
In this chart video I want to look at Apple ( NASDAQ:AAPL ), and I want to look at BlackBerry ( NASDAQ:BBRY ), two of my favorite fruits. Apple ( NASDAQ:AAPL ), I still think this stock is going to continue moving higher. It had this volatility squeeze, every so often you see this little pullback, then kind of a one day pause, which didn’t really amount to much, and then another pause up here right up at the 200-day moving average. But hey! Saint Nick is packing up his sleigh, we’ve got new iPads being released. The iWatch, not my deal, but some people are probably going to be selling a few of those.
I think this stock continues to move higher here. I would be buying this on any kind of weakness. And think of it this way too, between now and the holiday shopping season, the end of the holiday shopping season, what’s the catalyst for this stock to move lower? Maybe when they release the iPads, whenever the heck they’re going to do that, then somebody will look at the deadbeats standing in line in front of the store in New York City and do a count and realize that there are fewer people than there were for the last one. I really doubt that’s going to happen. But in my the only thing that could to be a fundamental event that would prompt selling in this stock. I just think this is a stock that institutions are now buying, where before they were selling it.
Now, BlackBerry ( NASDAQ:BBRY ); I still think the one with the wheel was the best PDA ever. But the deal with this now is, they’ve got this new PDA with a physical keyboard. I haven’t seen it, I’ve just seen this, a 5.5 percent increase. It’s a physical keyboard, it’s on the Android operating system so that makes all the folks at Alpha Google happy. And so I’m looking at this and this has got, in my view, more upside. This is a trade, look, it’s still BlackBerry ( NASDAQ:BBRY ), ultimately they’re like one step out of bankruptcy court, or from being acquired by, I don’t know, Hewlett Packard, I don’t know, who would make a dumb acquisition? Oh! I know, Yahoo. Yahoo, they make some dumb acquisitions, they would buy them.
But here’s the thing, low, lower low, it’s not really a low here but it’s just kind of a sideways “drifty” drift here. So what do we have? Hey! Head and shoulder. Left shoulder, head. Right shoulder, Boom! Look for this thing to be moving further. Here’s what I want you to do though, and I’ll say it again, because I don’t want to see any emails or tweets or stock tweets or whatever, “Thanks Dan, you lost me money.” You’re making your own trade, not me. Here’s my idea though, if the stock trades above 8.14, not the time of day but the price, $8.14, that is Friday’s intraday high. You’ll notice there’s a fairly high short interest ratio, over ten days to cover. This could be a little bit of a short squeeze. So if you’re buying this at like 8.14 and you’re deciding, “You know what? I’m going to look to sell it at the 200-day moving average.” Okay, that’s a 7 percent gain. But if this is indeed a short squeeze it could blast right through there.
But I’ll say it again, I would wait until the stock starts trading to a new high and then just ride the trend on an intraday chart. I don’t think this is going to be a real bear buster here, but it could be a ball-buster for the shorts. But the big deal is, you look at BlackBerry ( NASDAQ:BBRY ) and then you look at Apple ( NASDAQ:AAPL ), I think both of these stocks are buys, but for different reasons. I will just say this, and then I’m going to let you go, because I’ve got other stuff to do. You need to define your risk. Don’t just buy and your only definition is the amount of money you’re going to make. No. Look at the stock, consider the worst case scenario that YOU are willing to tolerate. Make sure that’s a logical scenario and then that’s what you go with. Position size, stop level, those are the way you manage risk.
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