lol. You think teenagers are buying these things? Take a walk on any street in NYC. And, sadly, I myself am many (many) years past being able to call myself a teenager. FYI - I do not own AAPL stock, I am only responding with first hand knowledge to people who question if AAPL products are selling. And, people that don't seem to understand the market and make comments about only teenagers buying!!!
I'm short this stock at at average of about $81 I had a decent technical reason for making the trade. Now I think the 5th wave completion could take the old stock to $94. (It splits to-morrow, so look at big res at 47) PE's in this stock are old news. It's earnings are growing. Looking forward it's probably trading at 40x next years eps. Not really expensive per se'. Don't forget the mega revenue stream of i-tunes. Yes I think this stock comes in enough that one can massage their shorts up here and make a little money. This however is a crappy, risky short and there's clearly better trades out there. See, even as a short I won't encourage others!@!@
You have guts, but what happened to "don't fight the trend" ? Overbought/oversold indicators historically do not fare well in a trending market, and AAPL has certainly been trending lately. If your bet is that the trend is over, why not bet on the confirmation instead?
You're SO right that "overdone" RSI ect. readings are death to faders in strong trends. I was looking for comparrisons to March/2000 in terms of measurements (I thought the old $75 3/00 high would be penetrated by 10%). Unfortunately AAPL gapped above me at that level and I've been very undisciplined buying her back in. My woes are compounded by my index longs that I'd bought as protection. I had nice profits in those but now I'm a scratch in futs with AAPL still higher. I don't know that the trend is over and my guess is that by the time "confirmation" of weakness comes, the stock will be right back at support. LOL.
"We must distinguish between a companies business and the price people pay for it's stocks at the exchange. These are two different issues." - Edwards & Magee, Technical Analysis of Stock Trends Words to trade by IMO. AAPL hit 90, managed to stay above for a very short time. Came back under and ended the week at high 86's. Is this weakness? If we had a clear path to 100 it should have stayed above 90. I do not hold a long term position in this stock but I trade it everyday. I wouldn't place my stake in any long term bias at this time. Maybe if we break 90 with good volume I would be inclined to see it go to 100. Mike
Give AAPL some more time. Trust me, there are millions of people who missed this stock and they are all waiting for it to come down a bit so they can jump on board. Cramer is shouting at the top of his lungs to buy AAPL as it moves down, and he's not the only one thinking along those lines. Give AAPL some time to retest the highs. It's obvious this stock could have made a climax top over the last two weeks but that doesn't really matter. The fundamentals are still strong, and there are still people who want a piece of AAPL. Let's see if it can take out the old high on less volume over the next couple of weeks. A divergence on the chart would also help. I would love to see it set-up like ebay. Divergence top on the RSI; low volume climb up to the new high; right after making a new high it gets hit with high volume selling; that makes a good short. However, look at the ebay chart back when the stock was trading around 46 (split). I remember everyone saying ebay was over priced, it was too expensive, it couldn't go any higher, etc... So they sold ebay down for awhile, all of the shorts thought they were the smartest people on earth, and everyone thought ebay was finished. Then everyone who wanted ebay before and didn't own it jumped in to buy, and ebay went on to new highs. Anyway, the point is, these type of stocks almost always fight back to new highs after their first small decline. Shorting here could work, but it's a very high risk trade. Even if the fundamentals were garbage, you can't fight a strong trend. EDIT: It's also important to note that the longer AAPL moves sideways (within a 10-15 point range), the better chance it has of moving much, much higher.
6 months ago this co' was worth 12B, now 36B... No matter how you look at it that is A LOT of product to move to justify the price
thanks for ur candor Pabst... I was wondering whether anyone traded this stock! (I am also on the short side)
What worries me is that other, in my mind more dubious stocks like EBAY (28B) have similar caps. If I could "inherit" AAPL or EBAY, I'd rather have AAPL. Naturally I'm short the more viable company.
Why would anyone wish to short a high RS stock like AAPL? I would not be surprised to see AAPL go to 500 (split adjusted).