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Apple "APPL" In a New Bull Run

|Includes: Apple Inc. (AAPL)

I had a long discussion with a friend about AAPL last night, he father wants to go long now, but as we all know by a quick glance it is poised to pull back to the 50 day ma and maybe even the 150, but the trend is still very long. Right now people feel like they have missed the boat so they are jumping into the stock and with the pull back to 275 I would assume that a lot of stops were hit on fresh trades as well as a lot of people will get spooked out of the long play.

I don’t really trade options but because of the super bull that is going on with AAPL right now, I would not bet against it but instead wait for it to give us a nice pull back for an entry long. The Trend is our friend never forget that.

Daily Chart of Apple

Click to Enlarge

There is support at 273 260 and 250, so if you were to jump long now you may have to ride AAPL all the way down to those levels, not worth the risk. Right now it is very over bought so if I were looking to pick up shares or option plays I would wait for a nice pull back and to see AAPL get over sold, and then enter long.

This bull run started back in October of 2009 and though it just went through a consolidation phase from April 2010 to September 2010, it is now out of that consolidation and ready to move on up much higher. How much higher will it move your guess is as good as mine. It has been suggested that Apple could run on up to $357 or possibly even more.

Even though Apple has been in a bull run for so long that never means just jump in. Timing your entry point is golden.

Had you entered Apple last Friday before the close you would now be upside down trade all because you were afraid that you might miss the next run up on the stock. What you need to do now is sit back and wait on Apple for a week maybe two weeks and allow it to go ahead and play out its correction, will he pull all way down to the 50 day moving average or the 150 day moving average there’s no way to tell for sure, however if you look back over the history of this Bull Run you will see that it is quite common for Apple to pull back to the 50 day moving average engage you a fresh entry to the long side. With this type of entry you get a chance to enter the stock with very low risk, keeping your stock loss just below the 50 day moving average.

Disclosure: NA