A place for Apple traders and investors to share their best ideas.
To get things rolling, here's Coindesk's Pete Pachal on Fox Business speculating about what Tim Cook's interest in crypto means for Apple:
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.
See also last week’s trading strategies.
I will continue as before, selling out of the money Calls against my DEC 17 $150 Calls. What I sell will depend on how AAPL trades tomorrow. I’m expecting that AAPL will continue to decline, despite Friday’s brief rally. If that is the case I’m tempted to sell the weekly $152.50 Calls. From a risk management point of view the $155s look better, even if the yield is quite a bit lower.
It’s par for the course with AAPL. They didn’t really blowout, just continued ongoing outperformance against an uncertain backdrop with the usual “but’s” from analysts marring short-term gains. I’d say Friday’s close was a great win though given the turmoil, company and sector specific headlines and global worries about inflation and the impact on consumer spending.
There could be a lot of churn ahead, especially with new lockdowns in Europe hitting sentiment, or a dip before a run-up for the usual ever-anticipated by CNBC “Santa Claus Rally.”
I agree, AAPL should be trading higher, but AAPL is trading in-line with an 11 year history. What is it about this time frame that makes investors somewhat consistently ignore OCT’s earnings/guidance?
“What..makes investors…ignore…earnings/guidance?”
It’s been remarked that the only two impulses driving stock markets are fear and greed. Right now, it’s a mix, IMHO. There’s a desire to buy at the bottom (greed) with a concern (fear) that AAPL has gained little over the last year – never mind the amazing jump in valuation from the previous year.
As a result, AAPL is almost in lockstep with the S&P 500.
Will that change? Maybe. But just as likely is that any substantial move upwards will be quickly followed by a selloff that’s just as substantial, as the fear/greed reflex kicks in and traders rush to lock in their profit.
In short, business as usual for Apple and AAPL…
But – there’s also a process, and that process sees Apple and AAPL grinding inevitably forward, like a massive icebreaker leaving a channel in its wake.
The ice thinned out a few years back, and both spurted forward. Now we’re back in thicker ice, and forward motion has slowed.
But the sheer momentum behind both can’t be overstated, nor the strength of Good Ship Apple’s hull. Betting against that long term progress through the present resistance is a big mistake.