by DAN
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We’re looking at Apple ( NASDAQ:AAPL ).
I always try not to be too bullish when a stock is just screaming like a Netflix ( NASDAQ:NFLX ), or too bearish when a stock is imploding. You always have to respect both sides of the market. Every time a short seller sells a stock short it is bought by somebody who thinks the stock is going to go higher. Somebody’s going to be wrong, period. Somebody’s going to be wrong; that’s the way it is in every single transaction.Somebody could have got a penny more; somebody could have got a penny less. Unless you’re a high-frequency trader, scumbag, then just shift that out to about nineteen zeros and then a one. I look at this stock and this isn’t the chart that moves me, this is. This stock has been in a volatility squeeze for a long time on the weekly chart. Bollinger Bands at 7.5 percent, almost 8 percent wide, although I can probably find a lower place, 7.5 percent. Not super duper tight, but still sideways trading action for quite a while, 20 weeks, it’s a weekly chart.Look at the volatility squeeze here; I’ve seen technicians do this, I saw one guy talk about how Apple ( NASDAQ:AAPL ) was clearly going higher because he went back and looked, it consolidated for all these extra number of weeks or months. Then it broke out and ran umpteen percent. Then it consolidated again and it broke out and it ran umpteen percent. It’s just like the least robust analysis that I’ve seen in a long time. The bottom line is, if trading was that predictable then just buy Apple ( NASDAQ:AAPL ) and then sell it when it gets to $1000.00. Then a few years later take your money and you’re done. Good for you.
It’s not that easy because at some point stocks peak even though they’re cheap. I looked on Yahoo Finance; the trailing 12-month P/E on this stock is 13.26, that is a dirt-cheap stock. On the other hand, Netflix, the trailing 12-month P/E on that is 272. Now, which would you rather have owned and still own? Apple? Would you rather have bought Apple ( NASDAQ:AAPL ) here on, pick a date, February 27th, you’re down 10 percent from February 27th. But the stock is cheap for cryin’ out loud; it’s 13.26 P/E, that’s cheap.
Netflix ( NASDAQ:NFLX ) on the other hand, who wants to won this dog? It’s so expensive, nobody’s buying it. Right? Well where have you been, this stock is up 80 percent. Yes, that’s correct, 80 percent; the P/E is 272. Which stock would you rather own, the one that is super, super pricey or the one that’s not? Which stock would you rather buy right now with this chart, on a weekly chart? Would you rather buy this chart, Netflix ( NASDAQ:NFLX ), or would you rather buy this chart Apple ( NASDAQ:AAPL )?
Me personally, Netflix ( NASDAQ:NFLX ) it’s a little scary to buy right now because it just feels like maybe it might want to pullback. But breakout buyers would look at today’s move as the buy signal. The high was 117.88 so breakout buying traders would look at the price of 118.00 and that’s when they would be into the stock. So this could actually continue to go up from here, but I digress. What I’m really talking about is this, Apple ( NASDAQ:AAPL ), this is not a stock that you want to be owning now. You want to be selling this stock if not shorting it.
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It’s not that easy because at some point stocks peak even though they’re cheap. I looked on Yahoo Finance; the trailing 12-month P/E on this stock is 13.26, that is a dirt-cheap stock. On the other hand, Netflix, the trailing 12-month P/E on that is 272. Now, which would you rather have owned and still own? Apple? Would you rather have bought Apple ( NASDAQ:AAPL ) here on, pick a date, February 27th, you’re down 10 percent from February 27th. But the stock is cheap for cryin’ out loud; it’s 13.26 P/E, that’s cheap.
Netflix ( NASDAQ:NFLX ) on the other hand, who wants to won this dog? It’s so expensive, nobody’s buying it. Right? Well where have you been, this stock is up 80 percent. Yes, that’s correct, 80 percent; the P/E is 272. Which stock would you rather own, the one that is super, super pricey or the one that’s not? Which stock would you rather buy right now with this chart, on a weekly chart? Would you rather buy this chart, Netflix ( NASDAQ:NFLX ), or would you rather buy this chart Apple ( NASDAQ:AAPL )?
Me personally, Netflix ( NASDAQ:NFLX ) it’s a little scary to buy right now because it just feels like maybe it might want to pullback. But breakout buyers would look at today’s move as the buy signal. The high was 117.88 so breakout buying traders would look at the price of 118.00 and that’s when they would be into the stock. So this could actually continue to go up from here, but I digress. What I’m really talking about is this, Apple ( NASDAQ:AAPL ), this is not a stock that you want to be owning now. You want to be selling this stock if not shorting it.
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