Join Mike Turner LIVE at The MoneyShow Dallas!

Join Mike Turner LIVE at The MoneyShow Dallas!


Sometimes Headlines on Apple, Amazon Don't Answer Traders' Questions

09/12/2018 4:37 pm EST

Focus: STOCKS

Mike Turner

President, Turner Capital Investments, LLC

Earlier in the week, a headline on one of the financial media websites screamed “Apple, Amazon lose more than $100 billion in market cap combined in 4 days.” That number might have even caught Jeff Bezos’ attention, writes Mike Turner Wednesday.

But the headline and the accompanying story don’t answer the question that investors want to know. Do I get out of Apple (AAPL) and Amazon (AMZN) or should I continue to hold on?
Isn’t that what you really care about?

In these articles written exclusively for MoneyShow.com, I try to help you understand the difference between noise and signals. And $100 billion in market cap is a loud noise. So,- let’s look at the charts.

AAPL has shot up nearly 20% since the end of July. In the past three years, there’s never been a six-week period of time that has seen this kind of growth in the price of AAPL’s stock.

chart 1

Currently, the weekly Expected Move (EM) for AAPL is $13.25 and the stop loss for AAPL is $196.46. AAPL remains in a bullish condition. Even with the sell-off from late last week (ending Sept. 7) and early this week, we’re still a long way from hitting the stop.

Let’s take a look at AMZN. Of course, AMZN followed AAPL as the second company to reach a $1 trillion valuation. While that’s a nice milestone, it really doesn’t mean anything for an investor in AMZN.

The chart for AMZN continues to be very strong. The blue dotted line on the chart is the 200-day moving average. It’s been almost 3 years since AMZN traded below this trend line.

chart 2

Currently, the EM for AMZN is $206.29 and the stop loss for AMZN is $1761.47. It continues to be in a bullish condition as well.

(Note: This is not a recommendation to buy either AAPL or AMZN. I currently own shares of AMZN in my managed account portfolios.)

The Expected Moves and the stop loss calculations are all derived from my proprietary algorithmic programs. Remember, I don’t guess with any of these trades. It’s possible that the trades can move against me, but I know exactly what my exit strategy is before I get into a trade. This is all part of measuring where the market is and not trying to guess where it might or might not be headed.

Bottom line: a $100 billion loss in the market cap of AAPL and AMZN makes for a great headline, but doesn’t mean anything if you’re an investor in either stock.

The MoneyShow in Dallas is coming up in just a few weeks. It takes place the first week of October and I hope to see you there.

The MoneyShow Dallas – October 3-5

Stop guessing and start measuring,

If you’re interested in learning more about how I manage money using the Market-Directional Investing methodology, you can read more here.

Mike Turner: how to measure a market, in a short video.

Recorded: MoneyShow San Francisco, August 24, 2018.

Duration: 4:22.

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