Apple (AAPL) — going up or down? Pick your timeframe. (January 04, 2016)
I want to look at Apple ( NASDAQ:AAPL ); it actually closed up on the day. It was really “sucking the tailpipe” in the morning, but watch how this stock behaved. This is important. It really printed first thing in the morning, and then it traded up all day. That actually “boded” pretty well for the whole market. Look, the weekly chart, this is ugly. The way this stock looks right now, I still think it goes lower, just because of this pattern. This is actually a triple top here. If we look at it on the daily chart you can see one, two, three big tops. Even up here at 135.00 everybody’s “yipping” about how cheap the stock is relative to the S&P and this and that.
Here’s the thing guys: I’m doing this on a PC, but all of my “tech” is Apple, except my watch; so I’m an Apple fan as far as the products that they make. So at the risk of “blaspheming” here keep something in mind, they’re a hardware manufacturer, they make “stuff”. Do you know who else used to make stuff? Dell. Lets look at Dell. Oh, that’s right, Dell isn’t publicly traded any more. They make great PC’s, but I’m just saying. I don’t want to rain on your parade, though getting a little moisture on you isn’t a bad thing. This stock is down how much from the top? Today, it was down 25 percent from the top. Think it can’t go further? I do. They have a big cash position.
Do you know who else has a big cash position? YOU, in your account. Don’t buy this stock just because, “Oh, they’ve got a lot of cash, they have billions and billions.” Yes, great! And it’s all over in Ireland too. The point is, the stock is moving down. That is all you need to know about whether you want to be long this stock or not. It is moving down. And if you’re long this stock, and you’ve been long this stock for a while, then I have good news for you, I think “bell bottoms” are coming back. I used to love bell bottoms because I have big feet and the bell bottoms always made my feet and my harness boots not look quite so big. But you’re obviously somebody who can’t let go of a good thing, even when everybody else has.
So that’s what I would tell you with respect to Apple ( NASDAQ:AAPL ), you’re wearing bell bottoms. The company does have a lot of cash, but I’m telling you the trend is down; the weekly trend. This is a stock that needs to go lower. Now, in the short-term, lets get to business here. This is a big reversal, a big intraday reversal. First thing in the morning people were coming for Apple ( NASDAQ:AAPL ) at 102.00. Boom! They’re buying this stock. My bet is, over the next few days (maybe just Tuesday), over the next few days this stock is going to move up a bit. I just think it’s going to be for a trade.
You’re going to have to wait for earning to be released to know whether Apple ( NASDAQ:AAPL ) is going to be a $120.00 or an $80.00 stock, but it’s going to be one or the other. But for now, short-term, go ahead and buy this if want, ride it up a bit, but don’t lose track of the prevailing trend which now is down. So forget about the fundamentals, because obviously, people don’t care about the fundamentals it’s down 25 percent. Instead just focus on the trend. You can look at that trend on your iPhone, iPad, or your Mac, but the trend is down.
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