First and foremost, I like AAPL here because the system I use likes AAPL here. It actually liked it 3 days ago, but I decided to wait and I'm glad I did because I'm getting a better deal here. I jumped in just before the end of the after hours session today because I couldn't wait any longer. The Fed meeting is a wild card tomorrow, but if the market rallies on it, i'd miss out if I waited. If it dumps, it'll just take longer to make my money. That's a risk/reward that favored going long today for me. I understand, though, why some would want to wait.
Since the beginning of the year, the 20 closed trades have netted a total of +41% on a stock that is up under 11% on the year. They've produced a per lot/day return of around 12 basis points, which is 3x the long term average return of SPY.
While AAPL struggled early in the year, it has gotten its footing and since mid summer has been a freight train chugging higher and higher as shown by that pretty little regression channel. It is trading above its 20, 50 and 200d MAs as well.
An underrated feature of AAPL in my opinion (although matthias would take the opposite position, I think) is that they have a huge pile of cash. They are holding over $100B in cash and marketable securities right now. While long term, I'd rather have that cash be used to innovate, I do not like the looks of the economy right now, and I think that AAPL's huge cash hoard gives them a cushion that a lot of other stocks don't have right now. I like that safety.
If Chairman Powell can manage to not rattle the markets tomorrow with hawkish rhetoric, and if Trump can keep his little fingers from typing out threats against Fed independence if Powell doesn't lower rates (doubtful), I think this could be a quick turnaround trade, as AAPL is already down 5 days in a row (though that's not terribly unusual for AAPL).
If the trade isn't a quick one, I am as always, not averse to adding to my position and tactically taking profits while waiting for the original lot to make its curtain call.
As always - this is intended as "edutainment" and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation.
BTW - ignore the pink arrows on the chart, those are part of something I'm working on and it was too cumbersome to go hide them all. Also, the green arrow is simply for my use in determining YTD return of the stock quickly. Ignore that, too. Also, I mistyped in the text box on the chart and I can't fix that. The average return per trade is 1.98%, not 1.94%. Not a big difference, but I like to be accurate. Sorry for that error.
Since the beginning of the year, the 20 closed trades have netted a total of +41% on a stock that is up under 11% on the year. They've produced a per lot/day return of around 12 basis points, which is 3x the long term average return of SPY.
While AAPL struggled early in the year, it has gotten its footing and since mid summer has been a freight train chugging higher and higher as shown by that pretty little regression channel. It is trading above its 20, 50 and 200d MAs as well.
An underrated feature of AAPL in my opinion (although matthias would take the opposite position, I think) is that they have a huge pile of cash. They are holding over $100B in cash and marketable securities right now. While long term, I'd rather have that cash be used to innovate, I do not like the looks of the economy right now, and I think that AAPL's huge cash hoard gives them a cushion that a lot of other stocks don't have right now. I like that safety.
If Chairman Powell can manage to not rattle the markets tomorrow with hawkish rhetoric, and if Trump can keep his little fingers from typing out threats against Fed independence if Powell doesn't lower rates (doubtful), I think this could be a quick turnaround trade, as AAPL is already down 5 days in a row (though that's not terribly unusual for AAPL).
If the trade isn't a quick one, I am as always, not averse to adding to my position and tactically taking profits while waiting for the original lot to make its curtain call.
As always - this is intended as "edutainment" and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation.
BTW - ignore the pink arrows on the chart, those are part of something I'm working on and it was too cumbersome to go hide them all. Also, the green arrow is simply for my use in determining YTD return of the stock quickly. Ignore that, too. Also, I mistyped in the text box on the chart and I can't fix that. The average return per trade is 1.98%, not 1.94%. Not a big difference, but I like to be accurate. Sorry for that error.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.