Thursday, November 04, 2010

Apple Inc. (AAPL) - Update On Setup From Last Week


Last week I wrote about a trade that was setting up in Apple Inc. (AAPL) which was basically a flag formation. Since that post, AAPL has broken out of this formation and has just made a new high for the year as of today.

Today's volume was also the best we've seen in the past two weeks which helps add a bullish tone to the current short term rally. Today Apple Inc. (AAPL) closed at 318.27 which was up 5.47 from Wednesday's close.


2 comments:

Michelle said...

Yes, it looks like AAPL started to climb up only after making retracement back to $300 level. Don't you think AAPL will continue to move higher? That is as long as there is no sell off in the stock market

davidch14 said...

michelle,

yes... not that i expect AAPL to get any growth premium. it's been trading with a p/e~ 17-23 since the low 100s with well over 50% growth.

the reason that AAPL the stock will continue to move up is simply to keep the P moving up with the E. investors should just buy... swing traders should buy when the p/e is under 18 and sale over 22.

despite what the press (i.e. cnbc, etc), appl has much more growth in it's current top two markets (phones, macs) with less than 5% marketshare, let alone the new markets they may enter in the future. aapl could double every for the next several years and not put a dent in those markets.

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