Now, of course - the big question is what to do NOW. There is no stock people ask me about more often. So, today - I'll run through the short, intermediate and long term view of this stock and what to do now if you,
1) Own a lot -
2) Have a small position and are looking to add more
3) Have yet to start a position in Apple
First off - We'll start with the Long position - I think Apple is the must own in any portfolio, protected from any tech trend variations by its massive cash horde. I advise owning two tech companies - and Apple is one of them as well as Google. There are other techs I've owned, but due to pricing - I've dropped MSFT from the portfolio.
Second - Intermediate term - Apple's been on a big run, but still trades at only a slightly elevated Price to Earnings ratio or - PE. Therefore, I think there is upside in Apple in the next 6-12 months. I rate the stock a buy at current levels with the following caveat - do your best not to BUY at current levels because of short term view.
Third - Short term - Apple is extremely overbought - on a crazy run. The stock has gone from 95 to 114 in a MONTH. The biggest stock in the world (by Market Capitalization) shouldn't move that much in a month. It's simply nuts. Therefore, I advice in Apple
1) If you own a lot of Apple - TAKE PROFITS. That's right - I said it - hit the cash register. I'm not saying sell your entire position, but please sell at least a small portion of profit. 20% of your shares in the least.
2) if you've bought a few shares near the highs and wonder if it's the time to add more - based on the charts - I say no. There is ALWAYS a pause - look at the bottom chart - the 5 year - see the massive sell-off that happened? Wait for a change in direction.
3) If you have NO position at this time in Apple - I simply advise you wait for lower pricing to begin buying. The run Apple has been on is simply historic and will not continue forever. No stock just goes in one direction all the time - see again the 5 year chart.
Short term - sell for profit, hold, and wait. Don't rush into the stock at 114.
Intermediate - look for profit-taking sell-off to enter stock.
Long term - must own core company for a portfolio.