Do you really want to stick with Appple (AAPL)? (August 02, 2016)
AAPL DJ-30 DIA AAPL
Apple ( NASDAQ:AAPL ). Yesterday this looked great, nice breakout above the 200-day moving average. Today, not so much. Here’s the thing: Apple ( NASDAQ:AAPL ), still in a downtrend, but doesn’t it look like this has kind of hit a bottom? This is, in my view, the epitome of a stock that is not trending anymore. It’s just not. And so you’ve got to ask yourself, are you going to stay long a stock that pays a 2 percent dividend? And you might. Or, are you just going to not buy the stock, wait for more activity one way or another. It sure LOOKS like the stock is continuing to move higher. And you can’t put too much emphasis on today because the Dow was down. Apple ( NASDAQ:AAPL ), big componet of the DIA ( NYSEARCA:DIA ), right? So some of that could be the case here.
But what I would suggest doing is this: This is kind of healthy consolidation, but you know when it’s not going to be healthy? If the stock breaks down below, I’ll call it 102.76. I’m going to set an alert just on my own thing, 102.74. If the stock starts falling, we’ll keep this just for a week, this is TC2000, they’ve made a lot of changes to the software, all good. So if this starts trading below here, I don’t want a piece of this. My best suggestion here is, choose your time frame. Long-term horizon, not my kind of stock because it’s still trading lower. Short-term horizon, not my stock. But if I was already long, here’s my stop. The bottom line is, this is kind of a nothing stock right now. But it’s still has a boatload of fans. And I know, just over the last few days, the fact that it was up here gets all kinds of TV coverage, Tim Cook and this and that and the other thing. Tim Cook isn’t Steve Jobs. Never has been, never will be. Apple ( NASDAQ:AAPL ) is almost like a value trade right now. But right now, not a whole lot of value in this chart.
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