Let's switch gears to a considerably more optimistic name: Wall Street darling Apple (AAPL). Apple has show tremendous relative strength this year, rallying nearly 30% as the S&P 500 slid more than 7%. That outperformance has been built on phenomenal fundamentals (remember, Apple's real P/E ratio is only 11.8). The technicals are equally attractive.
Apple has been forming a bullish ascending triangle in the last few months, a setup that had resistance at $400. At the start of this month, I recommended buying Apple at $383 in anticipation of a $400 breakout, and that's exactly what happened on Monday. Now a throwback in shares could provide a second low-risk entry for traders who missed the first rally.
A throwback happens when shares of a stock break out above resistance, then return to that former resistance level to test newfound support. With broad market weakness likely to drag Apple lower in today's session, buyers should look to buy as close to $400 as they can. Shorter-term traders can place a protective stop just below the uptrending support line in the chart above.Apple shows up on recent lists of 5 Growth Stocks Loved by Technical Analysts and Jim Cramer's Tech Stocks for a Eurozone Recovery.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV