Apple ($AAPL) is closing 11 stores due to COVID outbreaks. Let’s watch on Monday to see how far $AAPL falls from the tree. (June 19, 2020)
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I want to look at Apple ( NASDAQ: AAPL ) today. Why Apple ( NASDAQ: AAPL ), you ask? This is why; because apparently they’re closing some stores. Apple ( NASDAQ: AAPL ) is closing some stores because of the Coronavirus outbreak; Florida, Arizona, North Carolina, South Carolina, they are closing 11 stores. You can see the volume, the stock traded on twice-average volume here.
At the same time Microsoft ( NASDAQ: MSFT ) traded down and it kind of seemed like it brought the market down a little bit. This isn’t necessarily bad news; it’s not good news. What it is, is an opportunity to get information.
This is what I am talking about; when something like this happens, personally for me, I don’t give a rip if they close 11 stores or 110 stores because I don’t shop there. If I want something from Apple ( NASDAQ: AAPL ) I’ll get it online; it doesn’t impact me. Also, I think that’s a lot of people, they just buy stuff online or whatever. So it’s not really a function of how much this is going to knock Apple’s ( NASDAQ: AAPL ) earnings or revenues or anything like that.
It is more like, what’s going to happen to our economy? Oh my gosh, here’s another bad thing. Apple ( NASDAQ: AAPL ) is having to close 11 stores, the market is done, it’s time to get out. That’s kind of The Bad News Bears thing, where you have got to sell if, oh, we’re getting wave 2, which may happen, I don’t know, I’m not Dr. Fauci.
Here’s the thing though, watch and see how this performs on Monday. See how this performs on Monday and Tuesday and Wednesday, but more importantly Monday. And here’s why: This little green line here, this is the 8-day moving average, the 8-day exponential moving average. It seems like since April whenever this stock would hit the 8-day EMA it would rebound and would keep moving higher.
If you look and see what happened back here, you’ve got a similar thing. Wow, this is it. We hit 350.00, now this is over. Heavier than average volume, time to go; and then that turned out actually not to be the case. So we are back up here in this same situation only we really, really have some news here.
So this is what I would suggest doing: Definitely watch and see how Apple ( NASDAQ: AAPL ) trades on Monday. If it holds up here in the mid 340.00s or so, this could be your next opportunity to buy Apple ( NASDAQ: AAPL ). Is it a great opportunity? No, because Apple ( NASDAQ: AAPL ) isn’t consolidating, it hasn’t been drifting sideways, it is just kind of trending higher. But this is what strong stocks do, they are incredibly difficult to buy.
And so if you get an opportunity to buy here, close to the 8-day moving average, well that’s your reference for your stop. I wouldn’t give this any room at all, if you are buying now, if you are kind of a fast trader, not any more than like 342.50 or something like that. If you have a longer-term focus then give it 20 points or something like that. This stock is trending and as long as it’s trending then buying on the low edge of the trend is where you want to be and that is kind of where we are right now.
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