AAPL: Buying the Dips!

Discussion in 'Stocks' started by cactiman, Oct 6, 2012.

  1. even so, why have you tried numberous times now to catch a falling knife? aapl is in obvious downtrend atm. wait until it reverses? why ride the way down with the thesis that it will eventually go back up. seems like a very emotional trade to me.

    you could have also said very similar stats for something like say csco when it hit 80. then it hit 60 and people were probably saying exactly what you just said. oh but last time it went down 18% it eventually grew 35%!! yes, until it doesn't anymore. now 10 years later csco is sitting at $18 and you probably still have people emotionally attached.
     
    #161     Oct 19, 2012
  2. +1 apple will one day be a dog....... still believing its not done but I have nothing in it right now
     
    #162     Oct 19, 2012
  3. "Catching a falling knife" refers more to going long at lower and lower prices during a Bear Market/Long Term Downtrend - like 2000-2003.

    I don't think AAPL is in a Long Term Downtrend.
    It's in a lower left to upper right Long Term Uptrend, with various % moves up, down, and sideways along the way.

    The "thesis it will eventually go back up" is based on its behavior over the last 8 years.
    Isn't making trading decisions based on an analysis of a stock's past behavior the exact opposite of emotional trading?
    :)
     
    #163     Oct 19, 2012
  4. Daring

    Daring

    Looks lower still and earnings are very close.

    A serious concern, how does Apple keep this growth with no real new products?

    New versions of old stuff in my opinion is not exactly new product, as they are saturating markets with their new version per year cycle.

    However, below 580 is good support, time will tell if this behemoth is ready to die or not.
     
    #164     Oct 20, 2012
  5. Ash1972

    Ash1972

    Sorry, but this is pure BS.

    You seem to be saying that observing a single stock's market price over an 8 year period - during which it was in a bull market - is some sort of back test.

    In fact the belief that something that has been going up in the recent past will <i>continue</i> to go up is called recency bias, and is the key reason why most retail investors fail.
     
    #165     Oct 20, 2012
  6. I thought it was called Trend Trading.
    The Long Term Trend is up, so the odds favor it continuing to go up.
    Buying pullbacks in uptrends is not a new thing. What's the big deal?
    I thought it was standard procedure.

    I also think noting an uptrend's Higher Highs and Higher Lows, and measuring the % moves of the pullbacks and rallies is a valid form of analysis. Again, nothing new.

    My whole point with this thread was to show how buying dips "feels bad" when you're doing it, but it has worked for the last 3 years shown on the chart.
    And IF you had kept your "Faith in the Trend", put up with all those fears and doubts during the pullbacks, and bought in near all those higher lows, you'd have done quite well.
    :)
     
    #166     Oct 20, 2012
  7. ammo

    ammo

    corporations plan 6 months out,the market projects 6 months forward, where do you think aapl and the market will be in may,that's using the past and present data to bet on the future
     
    #167     Oct 20, 2012
  8. Since late September I've been selling AAPL 700/695 January, February, and April Bull Put Spreads.
    So my bets are for 700 or higher on the 3rd Friday of each of those months.
    Also have loss control/escape plans in place, in case things go wrong.
    We'll see what Mr. Market decides....
    :)
     
    #168     Oct 20, 2012
  9. ammo

    ammo

    i think today he is saying 6 months out aapl is worth 600-615,you have limited your risk ,good thing, but what do you base your forecasting method on
     
    #169     Oct 20, 2012
  10. So you're saying Friday's closing price is a prediction of AAPL's "worth" in May 2013?
    If so, I don't agree with your theory.

    AAPL's Friday closing price/worth to me is the homogenized combination of all fundamental, technical, and emotional beliefs/theories of all traders/investors at 4pm Eastern Time on October 19th, 2012.
    Nothing more/nothing less.
    :cool:

    I base my "forecasting"/"bets" on 2 assumptions:
    1. The Uptrend is still in place until a Higher Low is taken out during a retracement.
    2. All the % moves (i.e. Rallies to Higher Highs and Pullbacks to Higher Lows) in a stock's Uptrend (over the last 3 years on its weekly chart) will continue in a similar fashion.

    I find that works "most of the time" for my 3-9 month trades.
    :D
     
    #170     Oct 20, 2012