Wednesday, April 25, 2012

The Day After: Apple Pop (updated)

You could almost drink it, the Apple kool-aid. I would be a happier man had I never sold a share of AAPL some time ago. But it is past. This morning, AAPL was at 616 in pre-premarket trading. Currently at 611+. Might be a good time to sell and re-enter with the volatile swings ahead. Or it might be a good time to ignore the turbulence and let shares ride. In between is not recommended, as in buying high and selling low, unless the world market really is about to burst.

That won't be this morning, however. Instead, gaze upon natural beauty and relax. It's Tuesday and a good day to be alive.

Update 4:04 am (Hawaii) Just sold half the AAPL position at 616. Is there really a good time to sell AAPL? Flat answer is no. But since I'm energized this morning, trading the swings may work well. Beats using margin to buy more. If AAPL dips to 595 (Fibonacci retrace from this morning's high [618] to yesterday's close [560], I'll be eager.

Update 6:31 am Added 1/2 AAPL shortly after selling it, entering at 615.75 to round out the position again. But that was way too early. It tumbled down to 607+, came back to 612 briefly, then declined gradually. I got out of the position at 609. On the whole, a nice profit, but I did give back roughly 28% of my paper gain. Sure part of me wants to just lock up AAPL shares and hold for a long time, but with the Fed interest rate news and a shaky market, I'll sleep better with a clean slate.

Update 6:36 am Fed stayed neutral and no change in interest rate. AAPL dipped toward 608, but is now back at 610. I still anticipate a Fibonacci level move to 595 in the near term. TraderFlorida (Twitter) was right about the inevitable selloff on such a huge gap up. But a profit is a profit and I banked a decent one with the sell at 616.

Looks like the swing trade on AAPL is on my horizon. Why mess with anything else?

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