Time To Sell Apple?

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?

The Chart

$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.

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