Apple (AAPL) is down at support. Time to buy? (May 06, 2015)
Lets look at Apple ( NASDAQ:AAPL ). I posted a short note with a couple charts over on RealMoneyPro.com this morning, talking about Apple ( NASDAQ:AAPL ). My point was this: ideally if you’re into Apple ( NASDAQ:AAPL ), and I have no position in Apple ( NASDAQ:AAPL ), but I have a bunch of “iEverythings,” but if you’re into Apple ( NASDAQ:AAPL ) you just want to hold the stock.
We’ve already talked about that, everybody’s who’s long Apple ( NASDAQ:AAPL ) will tell you that, just hold the stock, you’re buying the company. That’s all well and good, but I know you, you can’t help it, you’re a trader, you just got to buy, you just got to be doing something. What I’m suggesting to you is, this is a money sucking pig. It’s got a breakout here but it’s a false breakout. The stock peaks and it turns out to be a great time to sell the stock.
Was it a great time to short the stock? No, because it’s fallen down almost 8 percent. That kind of short doesn’t really get my attention, it’s better than the old sharp stick in the eye. But what’s happened here is the stock popped up, it’s totally got the wind taken out of its sails and now the stock is down at support. It’s back at this level; it’s actually at a level that’s a pretty good buying level. Everybody that’s bought here over the past couple of months or whatever; everybody that’s bought here is a winner; they’re profitable.
But here’s the problem with that though, there’s a whole bunch of people that bought up here, you know who you are, that are unprofitable. The stock’s just really going to have a hard time moving higher. Isn’t that the only reason that you want to buy the stock now, because you think the stock’s going to move higher? I think there’s a whole bunch of supply that this thing has to chew through.
Even if the uptrend does continue it’s going to take this stock a while. I don’t know what the upside catalyst is. The problem with their silly watch is, they’ve had so many false starts they don’t get to have the big release where you see how many homeless people and jobless people are sitting in line outside the Apple store, in New York City, to be the first on their block to get a watch that doesn’t work very well, at least if you’ve got tats. I just don’t see the thing having this big massive upside catalyst to breakout of this resistance.
Ultimately, if you’re a trend follower, and I am, you’ve got figure the stock moves higher, because that’s what it’s been doing; they have a really nice habit of doing that. But if you’re a timing guy you don’t have to buy Apple ( NASDAQ:AAPL ) yet, wait and see if this support holds. Wait and see how the stock acts if it gets back up to 130.00. I would rather, and I’ll say it, I would rather be buying this stock at 135.00 when the stock has really good upside momentum, then I would buying it at 125.00. I’ve got nothing else to say but that.
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