Here’s the short story on Apple ($AAPL) – September 8, 2023
This is Dan Fitzpatrick with FITZ IN FIVE. I am looking at Apple ( NASDAQ: AAPL ) because I just saw an article, and it was saying the sell-off of Apple ( NASDAQ: AAPL ) is overblown. China is not that big of a deal, maybe that is true, I don’t know.
What I do see is this, on just a technical basis, this thing got crushed below the 50. It came back up, ran through the 50, and I think a lot of bulls said, That was tough, tough to hang onto that, and it held for 4 days.
Day 1, and then, well, we don’t know. And then higher, well, we don’t know. Oh, we definitely know. And then the following day the thing closed 3.7 percent down, which is actually a big drop for a stock like Apple ( NASDAQ: AAPL ). So this was not a good look for Apple ( NASDAQ: AAPL ), at all.
Now, it has rebounded, which is totally normal. We talked about this in the forum yesterday, how this sell-off was probably going to give us some kind of a rebound. I think it was NVIDIA ( NASDAQ: NVDA ) that did that as well, it had a little rebound off of here.
You get these big severe sell-offs of good quality stocks, and you will have buyers coming in to snag the stock; This is my chance to get the stock. But what I am telling you is this; You have got to watch this 50-day moving average right here. Because Apple ( NASDAQ: AAPL ) releases its next iPhone on Tuesday.
You will probably get a couple of new colors, and it probably has a couple of other features on it that seem really cool. If the market just goes nuts and loves it and pushes the stock up here, well, that’s good.
I have seen this pattern before, it happens. A big sell-off, a little zig-zag here, back up above the 50. Down here, Oh, that’s a bad thing. And then, is it going to stop there? Nope, it just keeps on going, so this was kind of a slingshot pattern. Stretch it, come back up here. Stretch it again, come back up here, boom, and it keeps going.
Do I think that is going to happen? First of all, I don’t know, but second of all, I don’t think it is going to happen. Because seasonally we are just not in that period, where buyers will come into a stock like Apple ( NASDAQ: AAPL ), which has done so well. I’ve described this as, like Tom Brady. Tom Brady is the goat, the best quarterback ever, but I wouldn’t burn a first-round draft pick on him.
And by the way, all the money that you have is the equivalent of a first-round pick. You can pick anybody you want, 6,000 stocks. I wouldn’t burn a first-round draft pick on Tom Brady just because he has done so well over the past 20 some years that he has played because I am looking forward.
What I am saying is, with this, the bloom has kind of come off the rose here. If the stock rallies up a bit, again, watch the 50. Even if it runs up above the 50, if it cannot hold that level, in my view, this is a really good short entry. So that is the long and the short of Apple ( NASDAQ: AAPL ), we’ll see what happens.