Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Thursday, January 13, 2005

Green "APPLE"s

...I love my laptop, a Dell to be specific. I bring this machine everywhere I go and my life depends on it. Whenever I have a problem, I call up technical support and they answerer or fix my problem as quick as possible. I love the product and I love the company but I do not love the stock.

Never love a stock, we have taught you to control emotions!

I never learned to use a MAC so I never had any experience with Apple (good or bad). Recently, my wife and I purchased an iPod and have been downloading songs from iTunes. Excellent products! I love these products and have since seen Apple show up on my screens over the past few months. Should I love the stock? NO. Never love a stock!

Apple (AAPL) first showed up on my weekly screens on 10/24/04 at $47.41. Since this time, Apple has made the daily and weekly screens numerous times. I didn't post Apple because of news; I posted the stock based on technical and fundamental information. The charts said that AAPL showed the potential to move higher based on the trend.

10/25/04 - 10/29/04: $52.40
11/22/04 - 11/26/04: $64.55
11/29/04 - 12/03/04: $62.68
12/06/04 - 12/10/04: $65.15
01/03/05 - 01/07/05: $69.25

The most recent daily post was on 01/05/05 at $64.50.
Apple has an intraday high of $74.72 and opened for a gap-up at $73.87, giving us a total gain to date of 57%. Not bad for 10 weeks of work, especially in this muddy market environment. I do have to say that AAPL closed near the intraday low – a negative sign.

The lesson of this blog is to pay attention to the charts, not the news. The charts showed us a buy 10 week ago and confirmed this buy several times since late October. Many people went out and bought Apple today based on the great news from yesterday (Apple shattered estimates). I am not saying that AAPL can't go higher but I know from experience that it may be too late to join the party when the news hits the street and everybody knows, even the "dumb money". If I was smart money (an institutional investor), I would be selling into strength today. If I was really smart money, I would have most likely sold over the past week or so, based on the 'M' in CANSLIM.

Piranha

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home