“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.