Patience is the key for Apple traders

“Most people think of me as an Apple Bear, but that shoe does not fit. Yes, I was telling people to sell Apple during the 2012 frenzy, warning them all that the growth rates could not be sustained and that the company was a far different one without Steve Jobs, but most of my words fell on deaf ears,” Thomas H. Kee Jr., president and CEO of Stock Traders Daily, writes for MarketWatch. “Recently, I also suggested that investors sell Apple when the stock was $572, so given those public comments, I can understand why people consider me an Apple bear.”

“However, Apple may soon turn into a buy, but right now, it’s going to be a case of playing the waiting game,” Kee Jr. writes. “I appreciate that the big money is still interested in Apple, and it is fun to see an investor as vocal as Carl Icahn get involved, too, but if you are not married to the stock, you better pay attention to price. My focus on price is what caused me to recommend that investors sell and even short the stock as it ran up to $700, it is what caused me to tell investors to sell at $572, and my adherence to price observations is also what tells me that APPL may be a buy again soon, but not yet.”

“There are absolutely times to buy AAPL, I recommended it to clients at $392 last year, for example, but I do not think AAPL is a stock you can afford to chase,” Kee Jr. writes. “You need to buy it when everyone else has sold aggressively, and sell it when those frenzied AAPL diehards become overly confident again. This is the cycle, and we see that overconfidence recently, but we are not yet at the oversold condition either… If you are trying to short Apple here, I think you are late, and if you are buying, I think you are taking shots in the dark. Be patient, wait for price to come to you, and take action when that happens.”

Read more in the full article here.


  1. Yes , some traders like me may be envious to see google pop up $4x or Facebook up 12% .
    Why can’t Apple rise ? Why dropped $40 ?
    Apple is the most profitable technology in the world . Why does it suffer this ? It is coz of one thing we don’t know . That is Apple is not only the most profitable , it is the fastest ever company which earns this much . Because of this reason , Apple has no growth . Apple competitors have growth is because it earns money much slower than Apple so they can grow . Like Africa grows more than America coz Africa is late to grow .
    Being no growth for now doesn’t mean forever .
    Apple will continue innovating in a clever way that will make it earn more in future .

  2. The problem is with Wall Street, not with Apple. Whatever Apple does, it’s never going to be good enough for Wall Street and on top of that, Wall Street puts more emphasis on a rumour than on solid financial results. As there is no shortage of rumours about Apple and the solid facts only emerge quarterly, AAPL is always going to be a very volatile stock.

  3. Friggin Wall Street. I don’t know, maybe Apple should stop giving guidance, just plop down the big profit number.
    Or mix it up, do a product announcement at the Quarterlies, right before the conference call.

  4. “You need to buy it when everyone else has sold aggressively, and sell it when those frenzied AAPL diehards become overly confident again. This is the cycle, and we see that overconfidence recently, but we are not yet at the oversold condition either.”

    Fuck you you stupid third grade oversized anal (ist) wart!

    If this is all a wall street anal-ist can point to as financial muster and credibility, then ANYONE who heeds ANY advice from these geniuses, that never saw the current economic meltdown and subsequent downturn, deserves to have their savings wiped out .

    Nation of idiot sheep follow nation of lazy incompetent salesmen.

  5. Patiently watch this turd tank while dumb fuck Cookie solves long term unemployment, strokes faggots behinds, lowers the seas, discovers life on Betelguese, fucks with the Kenyan, etc.

  6. And the problem with the wall shit anal ists is they know nothing about how innovative Apple can be .
    Stocks market are guessing the future potential .
    The anal ists just aren’t smart enough to know the potential .
    They just think so stupid.

  7. Google and Android are cleaning Apple’s clock and there’s absolutely no reason Apple should let this be happening. Apple really needs to work on investor’s perceptions if they want to have the company to hold some decent value. There is simply no reason in the world why Apple should be struggling to increase revenue when they have $159 billion in the bank. That’s just an extremely huge amount of capital they could be working with.

    I suppose Apple’s organization really isn’t set up at this point to tackle new markets and they’re probably going to have to get the new headquarters up and running. I’m just being impatient. I know Apple isn’t going anywhere but it’s just a matter of pride of seeing Apple get run over by Google so easily. I honestly believe that Apple could go up against Google in the search engine business with all those iOS devices Apple has. It just seems like easy pickings to suck at least 10% to 15% of ad revenue away from Google in the U.S.

    I guess nothing lasts forever. Hopefully, Apple’s future mobile payment strategy might get investors behind the company, but even that seems like a long-shot.

  8. There’s big difference between a “trader” and an “investor.” We can argue until dawn on the merits of either, but most people are much better off being investors for the long run. Trying to time the market, and jump in and out of a stock raises the cost of investing, and more often than not, trying time the market is a loser’s game.

    I prefer to be an investor. I look for well run companies with strong balance sheets (lots of cash, little or no long-term debt, strong cash flow growth and increasing earnings/earnings growth). If the company pays a dividend (typically a more mature company rather than a younger, fast-growth company), I make sure to reinvest those dividends so that they compound their total return. In the long run, over a number of years, those seemingly small dividends will accumulate and multiply the number of shares you own of the company’s stock. And as the company’s earnings (and stock price) grows over a number of years, the multiplying factor of the compounded shares of added stock generated by the reinvested dividends really add up.

    For me, it is much easier to let my investment a good company grow over time, rather than live by the day-by-day insanity of the market. I personally can’t think of a single day trader who ever beat the market over the long term, and those I know who try it are burnt out wrecks.

    Perhaps a professional trader like Thomas Kee can succeed, glued all day to a Bloomberg terminal, but for the rest of us, that’s not practical. So while Mr. Kee likely has a point, for most individual investors, I think we’re better off listening to a rather successful investor: Warren Buffett. His mantra is that the ideal holding period for a stock is forever. And I think his long term performance vindicates this thought.

    As for Apple, I know we all whine about the day-by-day drama surrounding the company. And yes, as Mr. Kee indicates, you could jump in and out of the stock. But the patient investor who buys a stock like Apple at a low price, reinvests the dividends and holds on for years (and who drowns out all the daily noise and hysteria) will save a ton of money on brokerage costs, not suffer a heart attack and over the long term, likely make out better than a nervous trader constantly trying to outsmart the market.

    In the long term, the market will outsmart any trader. But a patient, long term investor willing to ride out the market cycles and ups-and-downs of a stock’s valuation will eventually triumph handsomely.

    I hope this helps. Life is easier when you’re patient, and let the trees you plant grow on their own.

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