Apple is short-term overbought, right? Well, perhaps not. (September 15, 2012)
AAPL
I’m Dan Fitzpatrick at StockMarketMentor.com on Saturday, September 15th. Look let’s get into Apple ( $AAPL Apple Inc ); everybody was dogging on Apple’s ( $AAPL Apple Inc ) iPhone 5 so much because, oh it was under whelming and this and that and the other thing. Turns out the iPhone are sold out in an hour. I was online, I was actually trying to buy something else, I’m not the guy that rushes the store on the first day, I will be buying one but I was trying to buy some other stuff; their store was down. Okay, and it wasn’t you know because somebody forgot to turn on the server. They’ve had a massive interest in this phone, they’re going to be making them as fast as they can; this is a very successful release. As such this is the chart that matters to you, the long-term chart, you can see this stock has actually accelerated. Let me get rid of this stupid thing, that’s my line for September options expiration, which I trade a lot of options on Apple ( $AAPL Apple Inc ) because it’s a $691.00 stock; but you can see this stock is just starting to march along the upper Bollinger Band, just kind of the way it did back here when it was in the mid four hundreds and kept going. So there’s a lot of reason to be bullish on Apple ( $AAPL Apple Inc ). I get the fact that it’s overextended above the 200 day moving average, we can see it here, problem is it’s been overextended above the 200 day moving average since back here in December of last year when it was about $365.00 or so. So this is just the nature of the beast. I think you’re going to get a pop out of this thing on Monday, perhaps not, I don’t know, but it sure seems to me like this product is actually overwhelming not under whelming; when you start looking at it from the standpoint of how many are they going sell dude? As opposed to, is it a big technological breakthrough? Sometimes the big technological breakthroughs aren’t the most successful commercially because it takes awhile for the market to catch up with them. Still if we’re just looking at the chart here, Apple’s ( $AAPL Apple Inc ) short term overbought, it’s had a heck of a three-day move so it is short term overbought. You can see that at the end of the day, in fact let me go to a five- minute chart, we’ll see what happened intraday. Okay, stock took off and then it just began drifting lower. I would imagine that a lot of the selling was just simply due to the fact that traders weren’t really quite sure whether Apple ( $AAPL Apple Inc ) was going knock it out of the part with this release or not. They see the kind of move that this has made, so why don’t we just take some profits? I would suggest this, you need to get long Apple ( $AAPL Apple Inc ) and you need to stay long Apple ( $AAPL Apple Inc ). I’m not like a big Appleoneian, I like their products, I I have all of their stuff except for like an iPod, I actually have a bunch of old ones but now I just use the iPhone. So I love all their stuff and I don’t care if it’s the best that it could be and it’s not going to get any better; I’ll still buy more crap from them and so will a lot of people because they just like the product. Again, I will say it, there’s been a lot of pent-up demand and this isn’t a novel Fitzpatrick theory, but it is a theory and I think it’s the right theory, there’s a lot of pent-up demand for a new iPhone for the simple reason that a lot of folks, yours truly included, skipped the last upgrade. You’re going like, I don’t really care, I like the one that I have, it’s not that big a deal, so they skipped it. Well now there’s a lot of demand for that, so you’re jumping up, you’re jumping up a cycle, you’re skipping over the last upgrade cycle and you’re getting in on this one. So this is going to be a pretty big release. And guess what? In another month or two they’re going start talking about the holiday season; so get long this stock. Any kind of pullback is a pull back that you want to buy. They’re just not done going up. If you look at this chart right here, the weekly chart, you are not chasing by buying it at $691.00 or even $700.00 because it still looks like it has more to go. If you look at this chart, the daily chart, yes, you are chasing it at $700.00 because it just looks like it’s right for a little pullback. So pick your timeframe and trade accordingly, but on this daily chart, if you get any sideways drift or certainly any move lower, that’s a stock that you want to buy. One more thing, we are opening up Option Market Mentor, we’re right in the process of rolling it out, and those of you that are on the email list know that, you’re starting to get a couple emails, but here’s something that you may not know; my brother Gary’s handling the promo. I know this; we’re going to give everybody a risk free 30-day trial for $7.77. There’s a reason for that, lucky seven right? Risk free 30-day trial for $7.77. And guess what? If you don’t like it during the first 30 days, let us know, we’ll even give you your $7.77 back. So there truly is no risk on this, and then if you like it, which I’m sure you will, then great! We’re going to have some fun together, we’re going make a lot of money, but more importantly than that, because you can make money on your own with the learning that you get, most importantly we’re going to learn how to trade options the correct way. This market is lending itself to a lot of leverage, if it’s the right kind of leverage, if you’re doing it wrong you going to get the wrong results; so hang with me here, get over there and do this, just sign up for the email list; this is what the website looks like, this is where members will ultimately login, we’ve got a bunch of beta members now. Go over here, put in your information, let me know, I think this is the default box, put in your information and we’ll get you the information that you need. We don’t spam you; we’re too busy for that, but just get on the list so you can check out what’s happening. Okay? I’m Dan Fitzpatrick and I will see you next time. Free Chart