Apple has been stuck in a trading range for most of the last three months, unable to break through the top end recently with a run at 134 that failed. How does an investor play a stock when it's range bound like this? This is a big question at the moment as the general market is range bound as well.
When the market or a particular investment becomes range bound, I 'channel' that stock. Buy on the low end, sell some on the top end. Your entry into Apple is 125 (or lower) and your sell range is 134. I don't mean to turn over your entire float of core holdings in Apple. No, just trim a few shares when you hit 134 range and buy back when it swings back down into the mid 120's. Today Apple is trading at 126- okay to pick up a few shares.
Short term rating = BUY
Long term rating = BUY
When the market or a particular investment becomes range bound, I 'channel' that stock. Buy on the low end, sell some on the top end. Your entry into Apple is 125 (or lower) and your sell range is 134. I don't mean to turn over your entire float of core holdings in Apple. No, just trim a few shares when you hit 134 range and buy back when it swings back down into the mid 120's. Today Apple is trading at 126- okay to pick up a few shares.
Short term rating = BUY
Long term rating = BUY