From CNBC's "Stock futures retreat as Wall Street awaits results of midterm elections" posted early Wednesday:
Stock futures moved lower — following recent market gains — as results of the midterm elections dragged on with control of the U.S. House of Representatives and Senate still up in the air...
Stocks are coming off three-straight days of gains. The Dow climbed 333 points on Tuesday for its third-straight session of gaining more than 1%. The bounce for equities may be partly due to the elections, where Wall Street was expecting Republicans to gain ground and create gridlock in Washington, D.C.
But control of the houses of Congress were not clear overnight so far...
Morgan Stanley chief U.S. equity strategist Mike Wilson said on CNBC’s “Closing Bell” that if it does end up being divided government it could help ease concerns about inflation and higher interest rates going forward.
“It looks like the House will go the way of the Republicans,” Wilson said. “That means gridlock. Probably, less fiscal spending will be achieved.”
Charts: Yahoo!Finance sees a bearish price-crosses-moving-average pattern. Max pain stays at $142 with the same call mountain at $150 and put peak at $125.
I call it the Titanic Syndrome. When a large ship goes under, it creates a vortex that pulls everything around it down, even life preservers and “beachballs”. But eventually, stuff that floats escapes the vortex, and bobs to the surface.
Apple is more than just a beachball: It’s a submarine; the biggest and best submarine ever known. It will thrive even here, deep underwater.
The plan is to avoid selling until this Great Revaluation completes itself and AAPL bobs back to the surface again. That’s still quite possible. Good fortune has played a role in that, but acting on foresight was definitely part of it.
Out of curiosity, where would you put the profit? Would you leave it in cash, reinvest it somewhere else, or wait for another pullback and buy back into AAPL? Also, is this within a 401K or a taxable account?
We have both and sell out of both, and as I’ve explained previously, we’re 100% invested in AAPL and on fixed income (retired since the Great Recession). Consequently, we need to continually sell some AAPL to pay our bills. We try to “time” our sales to get us through periods (like the present one) when we feel AAPL is undervalued. We last sold in January of this year, continue to “coast” on our cash, and will be able to do so for multiple months yet, if required.
Oh, and volume is looking to be at or below average. Thumbs up!
Yep. Significantly below average.