Here’s the next entry on Apple ($AAPL) – August 16, 2021


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I want to look at Apple ( NASDAQ: AAPL ) today. The market started out, not really weak ( NASDAQ: QQQ ), but it did after China announced that they had, basically, some crappy numbers with respect to growth, retail, all of that kind of stuff. It started off on a negative foot and, frankly, I think that part of it might have been, I don’t know, I am just spit-balling here, it might have been what’s happening in Afghanistan, I am just sitting here kind of wondering. In any event, we’re still up and the trend is still intact, so that’s a good thing.

I am a little more cautious even than I was last week. When I say cautions what I am really talking about is, looking critically at all of my positions and I just want to keep the ones that are working. The ones that aren’t working, I don’t have as much patience for them, I am just speaking in generalities here, but I don’t have as much patience for them as I might, maybe I need to have more. I just like to cut down my account every once in a while. It is like I am going out and weeding the garden and taking away the stuff that’s not really working for me, we’ll put it that way.

One of the things that is working is Apple ( NASDAQ: AAPL ). I put this out as an active trade back here on the 14th, so almost 2 months ago. This was a really, really good entry, you look at where it was on the 50-day moving average. This was a really good entry here, right at the 50-day moving average, the stock trends up. When you get in a stock at the right time you actually have some ability to be creative. Then the stock comes up here, I was talking about this in today’s training session, your first add-on could be here. After a little pullback and a reinsertion of the trend, 3 down days, not really a big deal, then followed by an up day, so you are buying here and then the stock keeps going.

When I opened this trade this wasn’t the kind of stock that you would really get rich trading, like buying Tesla ( NASDAQ: TSLA ) at the bottom or something like that. But you wouldn’t really go broke, it’s Apple ( NASDAQ: AAPL ). Now we are up about 16 percent from where we were and this has basically been a pretty smooth trade. It’s been sideways, you can see this, I don’t have to count the days back, but that kind of leads me to the present time.

I believe that this is actually a breakout that you can add to. Maybe give it just right below today’s intraday low. It is a bit higher than the 50-day moving average than I would like, it’s all just relative to what has gone on before on the particular stock that you are looking at. So I look at this and it kind of feels a little bit high but what kind of trumps that analysis is, that the stock has been in a volatility squeeze, it’s been kind of squeezing for a while. And so when I see this then this kind of forms a new base, so to speak.

So you could buy this stock here if you wanted and keep a 5 percent stop down here. It is clear down at the bottom of this box, you could even take it down here, 6.5 percent. All I am saying is that this is actually not a bad time to be adding to your position. Could you be taking an initial position? Sure, you can. Just make sure you’ve got a stop that protects you in case the stock does retreat in case it needs more time to rebuild here before it ultimately moves higher. I like the way Apple ( NASDAQ: AAPL ) is trading. I actually just bought some more today. I like it, I hope you do, I hope you are making money.

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