Time To Sell Apple?
- Posted by TheArmoTrader
- on March 19th, 2012
Apple has had an amazing run. However, the run is getting very extended. It’s hard to call a top for any stock, let alone the most successful company of all-time. However, it might be time to sell Apple. Note that I am not recommending shorting Apple let alone selling your whole position. But it may be time to take a partial if you have been riding it for more than a week. It’s never good to hold onto a full position of a stock that has run so hard so fast. There’s bound to be some type of correction, where you can probably add back on if you are a longer term investor.
So why am I all of a sudden cautious on Apple (which I have never been before). Take a look at the longer term monthly chart. Do you see something that should make you cautious? Something that should make you take a partial or at least hedge?
$AAPL Monthly chart
As you see, Apple has had a great rising channel over the past few years. However, things are getting pretty extended. When they do, you always want to hedge or take some profits on a breakout or a breakdown of the channel. Simple TA (Technical Analysis). No way am I calling an end to this amazing bull run (unlikely), but Apple may take some time before it gets to the next hurdle ($700). Will you be able to stomach the pullbacks, violent or not?
This move in Apple reminds me of another near-parabolic move by another fairly-loved asset, Gold. Last year Gold had a similar run. The upside channel breakout should have cautioned traders to take profits or at least hedge.
$GLD Monthly Chart
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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