Apple Inc. (NASDAQ:AAPL) The Best Way to Play Apple Stock
I hear experts say that one should own Apple stock and not trade it. Ideally, I would rather enter long closer to $196 per share. And we might get that in the next couple of months. But I want to nibble long at this level.
This will be a long-term hold rather than a tactical trade. I can accomplish this by buying the shares outright, or I can use the options market to buy in the money calls.
Using options puts less money out of pocket risk. But in either case, I’m a fan of using options to generate synthetic dividends. So I would sell covered calls against either long Apple stock or calls.
The Netflix earnings will be a hard test for AAPL. On its last report, Wall Street punished Netflix very hard. But I don’t believe management misses two quarters in a row. If they do, I expect my long Apple position to also be tested hard in the short term.
There is also risk from the overall Market sentiment. Current rhetoric has built up fear of corrections but those are not imminent in my opinion. Sentiment can be swayed in either direction, all the bulls need is for the current headlines to go stale. But for the meantime, the U.S. is an a economic war with China and until the leaders sit down and start talking rationally the nervousness on Wall Street will linger.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 227.07.
The projected lower bound is: 208.03.
The projected closing price is: 217.55.
A black body occurred (because prices closed lower 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.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 36.8775. This is not an overbought or oversold reading. The last signal was a buy 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 45.53. 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 sell 27 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 -95. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -4.750 at 217.360. Volume was 9% above average (neutral) and Bollinger Bands were 6% wider than normal.
Open High Low Close Volume___
221.160 221.830 217.270 217.360 30,791,008
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 223.46 219.43 189.33
Volatility: 42 27 29
Volume: 34,186,416 31,619,376 31,404,308
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.
APPLE INC is currently 14.8% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 3 periods.