What is the best price to buy Apple (AAPL)? (December 13, 2016)
AAPL
I am looking at Apple ( NASDAQ:AAPL ). Now, it has nothing to do with the Feds deal tomorrow. To synopsize, nobody really knows how the market is going to react tomorrow. I could make a case for, “Okay, they hiked rates a quarter point. It is all clear, lets buy.” And I can make another case for, “Okay, they hiked rates a quarter point, but the Dow is at 20,000. We have had a heck of a run, lets sell.” Either one could happen. One of those two WILL happen. The market is just not going to sit there and have the bulls and bear looking at each other, it is not going to happen. That is one of the reasons that I am looking at Apple ( NASDAQ:AAPL ).
They have got the air buds, ear pods, whatever it is; I don’t think that is a big deal but it has kind of drawn the attention back to Apple ( NASDAQ:AAPL ). So we HAD this, I am drawing patterns here and ultimately I am going to take you to the weekly chart and tell you when to buy (a little heads up). High, lower high, lower high still. We can just kind of draw down here, same thing. This is kind of, not a classic, it is actually a really choppy “W W” pattern here, right? So now we are in the higher low part of the deal. This is a low that is higher than this one, and now we start drawing it this way. Well that doesn’t really work because then we got chopped out; so lets make this the low. What we are doing is just looking for general tendencies for price activity. This is a channel, right here. I have a whole bunch of arrows drawn on this. What the heck are you going to do with that? Not a darn thing.
I think the path of least resistance, for at least for the next few points is right here, we could go all the way up here. Fine. This gives it more clarity. It is important to look at multiple time frames. I am looking at Apple ( NASDAQ:AAPL ) now, I see the big moves that it has made. We can go back and take a walk down memory lane, zoom out, and see even greater gains. But all I am really looking at is this: You see this squeeze. Okay, fine. And this is what we are getting. And this is what we are getting. This is a real long, a very prolonged kind of a bowl. This type of pattern, if the stock starts moving above here, then everybody will look back and say, “Wow! That was one big long continuation pattern. Should have bought down here.” Well some of you probably did. I didn’t, and that was my mistake. Certainly I would love to have gone back and do that now. But what we are seeing is, this series of higher lows and higher highs. You know, this can form some kind of a little cup and handle pattern here, that springs this stock higher.
I would prefer to trade it this way: If we are looking at this type of thing, I want to draw a line right below 120.00. I think if the stock starts pushing above 120.00, I think, the distance between that and this all time high, I think that is going to be pretty easy. I think that is going to be pretty easy to get. So I would want to be want to be buying this stock, not at 115.00, you can if you want. But I would give up the 5 points, wait for the stock to get above 120.00 and then buy it. And then keep a stop, say, down in here. You can go ahead and buy it now, just make sure you have a stop someplace. Because Apple ( NASDAQ:AAPL ) hasn’t been the greatest stock in the world, but it is starting to work now. So, like I said, 120.00 to me that is a better entry than 115.00, because then at least you know the stock is still under buying pressure.
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