Home > Buy Candidates > WALL STREET CRAPS TRADING & INVESTING THOUGHTS ON APPLE @ $451

WALL STREET CRAPS TRADING & INVESTING THOUGHTS ON APPLE @ $451

May 4th, 2012

FROM APPLE EXPERT, EDITOR OF THE BULLISH CROSS ADVISORY & HEDGE-FUND MANAGER ANDY ZAKY: The two key levels of support for Apple’s stock in the intermediate term are $537 (32.8% retracement) and $503 (50% retracement) a share. We believe Apple presents with a unique buying opportunity at $537 and an extraordinarily rare opportunity at $503 a share. While we don’t believe the stock will ever see $503 a share, if Apple does reach that level, it would be the equivalent of $310.50 in June 2011 or $80.00 a share in March 2009.

Investors tend to over-complicate things. Apple (AAPL) will undoubtedly see $750 a share by January 2013 and will likely see $1,000 no later than the fall of 2013.

Thus, we believe the best thing to do is just to go in and buy now, ride any potential drawdown to $537 a share, ignore all of the nonsense you are likely to hear on the way down and beat Wall Street by being smart enough to realize what they often do not. And that is the fact that Apple will inevitably sell 100 million iPhones a quarter within the next few years. When that happens, Apple will be trading far north of $1,000 a share. Who cares about a $30 – $50 drawdown when there is over $500 in upside for the stock over the next year or so. Don’t make things so complicated. Just go in and buy.

Comment: The 200-Day Moving Average for AAPL is currently around 451 and rising. That would also be another place where the price of the stock may touch on the correction down. There is also a price gap between 425 and 450 that may end up being filled. This remains a legitimate possibility and one that fundamentally-oriented investors in Apple will find hard to swallow.

On the shorter term, the Money Flow Indicator has a reading of 32 and needs to close below 20 in order to generate a buy signal. This one indicator allowed me to take a position in Apple on the day of bottom in June 2011 just over $310 a share. So be ready to make a small side-bet based on this one indicator if this should occur in the near future.

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