Apple (AAPL) is testing $93 for the 8th time this year. Trade probabilities, not fears. (May 02, 2016)
Lets look at Apple ( NASDAQ:AAPL ) in today’s Free video. As I’m doing this video I’m watching a replay of Cramer’s interview of Tim Cook on Mad Money. It’s kind of an interesting interview, he is essentially saying. “Over two years we’re growing really fast, like 70 percent. China’s smartphone market isn’t really generally growing, but we’re doing pretty good.” So he’s putting a good face on the company’s growth, etcetera, etcetera. And that’s fine; but I’ve got a trade here for you. This is a stock that’s down where it has rebounded multiple times before, I could say, even here, here. Even though these are pretty close together they’re actually several days apart and the way the market was gyrating around here this was literally like a bunch of different tests.
This is about the seventh time that Apple ( NASDAQ:AAPL ) is down here. And if at first you don’t succeed try on the eighth time. I would look at this as a good opportunity to buy right now with Apple ( NASDAQ:AAPL ), as a counter trend trade. You’d keep a stop just a little bit below this level. Because after all, at some point or another when support is tested enough, ultimately it’s probably going to fail if it hasn’t first rallied away and broken through what turned out to be a base. Right now we don’t see this as being a base, not yet. Top, double top, triple top, so this is really the topping pattern here. Reversal coming down here with lower highs, lower lows. But you can see this could very well turn out to be a base.
What I’m suggesting is, that you literally trade this pattern: a descending flat triangle, looking for this kind of bounce. Because all that’s going to be doing is perpetuating the pattern that we’ve seen so far. So you’re taking your shot, this is a really good trading opportunity. It’s a good buy point because it’s low risk. The stock will probably, but who knows for sure? It will probably get a pop tomorrow morning because of Cramer’s interview of Tim Cook on Mad Money, and Cramer loves Apple ( NASDAQ:AAPL ). So you will probably see this move a little bit. But I’m just saying this is a low risk entry point, because you’re buying the stock so close to where you’d say, “Oh crap! I’m wrong, the stock is moving lower,” and you get out with a loss. So this is a stock that you can buy. I’d say if it moves to 100.00 you better watch it closely, probably a logical place for traders to sell.
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