Howard Lindzon is shedding some Apple

The co-founder of StockTwits saw an opportunity this week to take his oversized position back to normal.

From Shedding Some Apple and Crazy Investment Facts, a note posted Saturday from Tuscany:  

Apple closed this week at $185

When I last checked in here on my oversized Apple position, the stock crossed $165 to the upside and I wrote ‘Apple Survived‘. A month earlier I was buying the Apple crash too early and it looked like Apple would never stop going down.

This week I sold some Apple. There are many other technology stocks I could have bought last November and December that have done better that Apple in the rally from the December bottom.

That is just the nature of picking stocks…

In Tuscany, the $VIX (measure of volatility) is always 4, but in the United States a $VIX reading of 12 is one of the reasons I feel like selling some Apple stock right now feels prudent. In December the $VIX exploded past 30 as Apple crashed to $150. This chart really captures how bad December got.

My take: I subscribed to Lindzon’s e-mail newsletter last fall because someone told me he had a large and influential following. Good call. I always learn something.

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11 Comments

  1. David Emery said:
    Let me try to close the loop, because I don’t quite understand: The argument is “I’ve made some money on AAPL, and the stock is getting a lot more volatile, so now’s the time to sell.” Is that right?

    1
    March 16, 2019
  2. “Let me try to close the loop, because I don’t quite understand”

    Here’s how he closes the loop:

    “The market strength in technology is pretty broad and I want to spread the profits from the Apple trade into some emerging leaders.”

    Basically, he thinks he can make more money elsewhere.

    2
    March 16, 2019
  3. John Konopka said:
    There is a mindset that I’ve made some profits so I should cash out now as opposed to others that look at the long term value of the property. Day traders vs investors.

    2
    March 16, 2019
  4. S Lawton said:
    The last is not the director of the future. Worst case Enron. GM, Sears, Ford, IBM. Odd how you doing to P/E as your mantra and ignore any other investment advice.

    0
    March 16, 2019

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