High Heeled Traders

Crunching Apple

October 26, 2016

Been up late yesterday to check on profit opportunities for this earnings seasons. Last week’s MSFT earnings was stellar pushing its stock to all-time highs. What about its old rival APPL? It used to be my favorite — so I know my “emotional” attachment to it perceiving it as a winner came into play, but I have to be careful otherwise the trade could be a disaster if I just go in blind. So read up on the news and checked the charts. It has been rallying for a few weeks now with the last Iphone 7 seemingly well-received, and rival Samsung having problems with its latest release exploding got to be good news right… but then if you look at the growth areas — the supposed wonder watch and the “intelligent car” there are those spots that could make the stock go either way by a huge percentage. So I decided to wait on this one. I had to remind myself that there if there is only one rule to follow, it is to keep losses small, and if my initial risk is not enough to accomodate the swing on the downside, it is not a trade I could take. Let’s say my initial risk for APPL is 1% which is $1.70 and historically the stock moves around 5% either way on Earnings release, then that 5% is wayyyyy too much for my risk and not worth me entering the trade at this time.

My guess, is the stock will still recover because of the growth areas — like the void left by Samsung; and increasing revenue on Apple Music and services, it has massive cash and with PE around 13.5 so for me it is still a BUY, I just want to enter again at a better price.


“Apple’s forward expectations aren’t great and it’s susceptible to more of a pullback.
Sliding prices for Apple iPhones and a forecast for lower-than-expected profitability over the holiday period cast a cloud over an earnings season that’s been generally positive, with about three-quarters of the S&P 500 Index companies to have reported so far beating estimates.”

Just finished US Investing Workshop last Saturday with some brave souls taking on the US market. I said to them there is more security and risk management you can employ so there is much to learn, yes, but well worth the effort for its rewards. Next event on November 26 !See you there!

ALSO you might want to read this article on why women should never give up their jobs (or have their own income)

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