Why buy Apple again after just selling it a few days ago? Read more about this strategy here.
Trading around a position is key to being successful in the market. Success isn’t determined by random stock picks. For contrarian investors it means finding those bad stocks of good companies and buying them when it seems everyone else is selling. Although it’s nearly impossible to spot a true bottom or true top, buying into weakness and selling into the strength can mitigate the risk. I’m not recommending you try to catch a falling knife but you need to learn how to spot a stock that Wall Street is putting on sale.
This is usually accomplished when the last of the so-called “analysts” recommends a buy or sell. I buy on the last sell news and sell on the last buy news. It sounds simple but you would be surprised how few people actually play the game this way.
A stock like Apple or Google is going to have swings both up and down and you want to be able to profit on those swings. I like the buy on Apple here at $166 because after the drop today the stock traded sideways and indeed closed above my trigger. iPhone sales are going well but 3G problems still plague the device despite the recent firmware updates. The real upside to Apple can be seen in their App store which is so far blowing away all estimates.
Look for a $175 - $180 price range in the next few months.
I own shares of Apple(AAPL) but not Google(GOOG).
