Apple Inc. (NASDAQ:AAPL) Simplicity Trumps Everything

Apple Inc. (NASDAQ:AAPL) Simplicity Trumps Everything

Apple Inc. (NASDAQ:AAPL) Simplicity Trumps Everything

That’s true even though Steve Jobs is gone. Because he didn’t just create a company culture, he built a consumer culture. Apple was and still is – for the most part – all about one thing: simplicity.

Advancements in technology have complicated this mission to a certain degree, but Tim Cook maintained Jobs’ legacy in keeping Apple products intuitive and easy to use. When something goes wrong, it’s usually easy to fix.

Nobody can say that a PC problem is easy to fix. They are the devil’s gift to consumers.

Yet as devices grew more complicated, Apple didn’t just let it happen. What began as a brilliant store experience to shop and sell products also became a central hub for generating repair revenue.

The Genius Bar is Pure Genius

The Genius Bar may seem like a one-stop help shop, but it’s just a Trojan Horse. If it’s anything other than a simple fix, you’ll be paying for it now. This concept was so successful that Best Buy saved its business by replicating it. They invited in a number of brands to create similar store-within-a-store concepts that offer the same “fixes.”

The Apple store also operates like the streamlined machines it sells. Apple employees are friendly and smiling like you’d expect from Disneyland workers. Consumers are serviced with efficiency and ease, and the chance to try new items is spectacular.

By building a loyal consumer culture, Apple never has to put products on sale. Apple enthusiasts are usually treated to frequent updates and upgrades, each markedly better than the last.

Tim Cook may not be a visionary, but he’s a solid game manager.

It’s Not Too Late to Go Long on Apple Stock

While there may be some near-term weakness, it is not too late to buy and hold Apple stock for the long term.

The company has $135 billion in net cash, or about $30 per share. That means Apple stock has a net-of-net-cash price of $170 per share. FY19 earnings are expected to be $11.43 per share, giving Apple a P/E ratio of about 15.

Analysts see earnings growth of 12% annually over the next five years.

Is it worth paying 15 times earnings for 12% growth? Yes, and that’s because Apple deserves a premium for its world-class brand name, ample cash position, and the fact that it generated $64 billion in free cash flow last year.

In short, Apple is fairly valued, offering plenty of upside for years to come – plus a 1.5% yield.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 193.36.

The projected upper bound is: 211.58.

The projected lower bound is: 190.78.

The projected closing price is: 201.18.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with APPLE INC), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 54.3753. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 58.32. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 24 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 11. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 23 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 1.220 at 201.240. Volume was 27% below average (neutral) and Bollinger Bands were 44% narrower than normal.

Open High Low Close Volume___
199.200 201.510 198.810 201.240 20,578,016

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 200.72 193.74 188.05
Volatility: 25 34 40
Volume: 21,794,436 28,844,222 33,666,980

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 7.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 17 periods.

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