This week's Apple trading strategies (6/8-6/12)

A place for Apple traders and investors to share their best ideas.

To get things rolling, here are a couple talking heads on CNBC's Fast Money Friday wrestling with the dubious premise that Apple "rocketed" to an all-time high because Credit Suisse raised its price target to a (still wet) $295.

Cue the video:

Below: Apple vs. the S&P 500 last week (normalized) …
Disclosure: Although I am now an Apple shareholder (see Why I bought a share of Apple, my first), I am in no position to give trading advice. Don’t blame me if you drain your IRA doing something you read about here.

7 Comments

Fred Stein said:

The fact that AAPL was not impacted by the Broadcom hint says that the market is smarter than those on the video clip. Short delays in a product launch, or in customer demand due to Covid-19 don’t matter. – tiny impact to 5 yr DCF.

Maybe the foolish investors who react to rumors and projections of iPhone sales have left the stock for good. That’s good.

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June 7, 2020
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David Drinkwater said:

I have to ask: am I crazy to think that a correction is coming? The market seems to be pretty greedy right now.

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June 7, 2020
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- Frank Pedron said:
  
  I don’t think there is any sane investor out there who doesn’t consider that possibility.
  
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  June 7, 2020
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- Fred Stein said:
  
  I’m mentally prepared for an overall downturn. AAPL will likely come out of it sooner and stronger than most.
  
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  June 7, 2020
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Jerry Doyle said:

I say a market pullback. There is talk of a V-shape. I say a possible W-shape. We will have another opportunity to buy more Apple on the dip & then Apple roars back.

The economy suffered structural damage. Friday’s jobs report showed resounding economic growth. Was this jobs data misconstrued? The jobs survey report may be misleading & the models underpinning the report may be too. PPP loans have to be used on payrolls and most workers are not back. The 8th week is here.

I sense market irrational exuberance. Friends say it doesn’t matter because the FED backstop continues to boost asset prices. Main Street businesses are not reopening. I see mom & pops, small business bankruptcies in my geographic area. It has to be occurring elsewhere. Business & industry fundamentals have not improved. Default rates going up can spiral into contagion throughout the financial system. The Association of Risk Professionals sees 25% default rate for leveraged loans. The FED can backstop for liquidity risks & for credit risks, but the FED cannot backstop for “default” risks & for massive bankruptcies. If this happens, then we have “capital impairments” & capital impairments are a non recoverable investment mistake say economists. The markets are not looking at the default rate for leveraged loans. They are looking solely at a FED engaged as a printing press backstop. Potential default risks & bankruptcies pose a risk to the financial system that the FED backstop cannot address.

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June 7, 2020
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- katherine anderson said:
  
  I believe the jobs data is as misconstrued as the Covid-19 data will be shown to be. A long-time friend of mine will be included in the numbers of Covid-19, and “Covid-19 related” deaths. She was sent home from Toronto Western Hospital emergency, not once, but twice one evening in April, and was found dead at home the next day. (Probable heart failure; she was 62, overweight and a smoker.)
  
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  June 8, 2020
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Rodney Avilla said:

“A place for Apple traders and investors to share their best ideas.”

As an aapl investor (and an Apple product user) since 2001, my best idea has always been to buy and hold, only selling some if I have too, and buying more as opportunities occur (additional funds and/or dips in stock price). Sometime in the next few years I will need to start living off of my investments, but until then…

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June 7, 2020
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