The U.S. needs submarines — and General Dynamics (GD) happens to be very good at making them; ...
Why I'm Sour on Apple Right Now
12/14/2012 7:00 am EST
Often a favorite trading vehicle for traders, Scott Redler of T3 Trading Group shares why AAPL is not the apple of his eye right now.
Apple (AAPL) is a stock I like to trade frequently because it often sets up well technically. AAPL saw a harsh down-move after topping out above $700 in September, and is now a bit broken technically. Whereas I usually trade the stock with a little bit of a bullish bias, right now I am very neutral and nimble.
AAPL relieved a lot of pressure with the potent reversal on November 16 and was able to bounce back up to near its 200-day moving average. However, buyers did not step in aggressively at those higher levels and AAPL never reclaimed the 200-day MA, a bearish sign. After putting in a higher low on December 6, the stock has been trying to bounce but has not been all that impressive.
Here is a shorter-term look at the AAPL price action yesterday, which worked well.
For short-term bullish composure to remain intact AAPL needs to hold the $537 area, which was Tuesday's low. The short-term reference point of resistance is Tuesday's high, and then today's high will be the level to watch. AAPL is often a great swing trading vehicle, but right now I am treating it as a cash-flow trading vehicle only. The stock has a lot to prove after the recent price action.
Disclosure: Scott Redler is long AAPL.
By Scott Redler, Chief Strategic Officer, T3 Trading Group
Related Articles on STOCKS
Most investors don’t know it, but wholesaling used cars is a red-hot business. This is why Cop...
That doesn’t mean Best Buy (BBY), Target (TGT), Macy’s (M), Home Depot (HD) or others ar...
For those new to trading, new to me, or my methodology, I think the following ground rules will help...