Apple is surging in early trading ahead of its earnings release today after the bell. The stock is close to a new high and is well above its moving averages and Bollinger bands. So, the million dollar question is - should you buy Apple today ahead of earnings?
I have followed Apple stock for a long time. It's unusual to see the stock running up like this in the days before an announcement. This puts pressure on the earnings and any disappointment will lead to selling. I've said it before - I don't like buying stocks at 52 week highs/all-time highs. Wait, let me rephrase that.
I DON'T buy stocks trading at 52 week/all-time highs. It's a suckers bet to buy at the top. So much for buy low, sell high, right? What should an investor do that is waiting to put money into Apple?
Short term rating = HOLD
Long term rating = BUY
This means - wait for a better price. Pick a number below the current trading level and make a line in the sand. Wait for that line to come in and BUY.
I have followed Apple stock for a long time. It's unusual to see the stock running up like this in the days before an announcement. This puts pressure on the earnings and any disappointment will lead to selling. I've said it before - I don't like buying stocks at 52 week highs/all-time highs. Wait, let me rephrase that.
I DON'T buy stocks trading at 52 week/all-time highs. It's a suckers bet to buy at the top. So much for buy low, sell high, right? What should an investor do that is waiting to put money into Apple?
Short term rating = HOLD
Long term rating = BUY
This means - wait for a better price. Pick a number below the current trading level and make a line in the sand. Wait for that line to come in and BUY.