Breakaway gap in Apple (AAPL)? Don’t overlook AMZN — probably more upside. (February 01, 2017)
AAPL AMZN AAPL AMZN
I mentioned Apple ( NASDAQ:AAPL ) yesterday after earnings. I said that this could actually lead to a breakaway gap, but the print has to hold, and it really did. So lets just kind of look and see what happened today. They reported earnings, really nice trading action. The stock opens up around 127.00 and this level is still holding. In my view it is not really a high momentum stock. You can look at the weekly chart and see what has been happening here. I do think the stock is ultimately going to come up and test this level, maybe even push to new highs. It has been in consolidation for quite a while so I think you are safe to own it here.
If you want participate that is fine as well. But I want you to stop and think about this for a minute. You can put your money wherever you want, in any stock you want. Apple ( NASDAQ:AAPL ) has such a massive market cap, I mean Apple ( NASDAQ:AAPL ) is going to be the first trillionaire. They have got massive cash. They are huge. They are very, very widely owned; I am not sure I would say over owned but lets just say, if you are a fund, you own Apple ( NASDAQ:AAPL ). If you are a pension fund, you own Apple ( NASDAQ:AAPL ). If you are a money management firm, you own Apple ( NASDAQ:AAPL ). So I just don’t know what the steepness of the trajectory is going to be from here forward. And I think you would probably wind up doing better on some other stocks.
Frankly, like Amazon ( NASDAQ:AMZN ), because Amazon ( NASDAQ:AMZN ) has had this long period of consolidation as well, not as long as Apple’s ( NASDAQ:AAPL ). Amazon ( NASDAQ:AMZN ) has such a bigger, better, more attractive and brighter growth picture than Apple ( NASDAQ:AAPL ) does. And so if you are looking at taking a position in Apple ( NASDAQ:AAPL ), fine. But just know that that money could be going into Amazon ( NASDAQ:AMZN ). I own some Amazon ( NASDAQ:AMZN ) here. They report earnings tomorrow after the bell.
I very rarely hold a stock like this over earnings. But I am going to make that exception in Amazon ( NASDAQ:AMZN ). If that stock breaks out above here, say 850.00 or so, this could really scream. So Apple ( NASDAQ:AAPL ), Amazon ( NASDAQ:AMZN ), take your pick. If you are in Apple ( NASDAQ:AAPL ) keep a stop below today’s intraday low, basically the morning print. If you are Amazon ( NASDAQ:AMZN ), take a small position, at least I would, before earnings. If the stock hits new highs I think you are going to see a lot of folks scrambling to take this stock.
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