Apple: One Last Pullback and Then It's Up, Up and Away
by: Andy Zaky September 15, 2010
The technical picture suggests the market, and Apple (AAPL), are in for one last pullback. After bumping resistance at $113 on the SPY, I think the market will sell off within the next 1-5 trading days. Don't be fooled by this sell-off though. I think the September momentum in stocks is very similar in nature to the type of momentum we saw in July 2009, and March 2010.
Yet, there still remain some pretty big headwinds as we go into October; investors should be careful. Moreover, according to a trader whom I highly respect, Yong Pan at Cobra's Market View, there are some distinct differences- not only in the volume but in the cumulative tick. This could suggest that this is a sucker's rally. cobrasmarketview.blogspot.com
Still, whether this happens to be a sucker's rally or not, I'm looking to get long Apple very soon. I'm eyeing the 2012 $300 call options. If I could get those things for $25 a contract, I'll be very happy going into next year. Yet, if push comes to shove, I would be willing to buy them at $30. Like I said a few days ago, I think this particular up-leg in Apple is for real. Unlike the other big rallies we've had in the stock since April, I think that this rally is going to hold. The stock might be in for another short-lived pullback, but after that, we're off to see the Wizard at $300 a share this October.
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