How to Play Apple's Pullback

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (TheStreet) -- Just when I thought we were safe, it's happening again. Apple (AAPL) fans are coming out of the woodwork claiming that some external force is, at least temporarily, back to hold America's favorite stock down. Consider these Tweets (from Tweeters who shall remain anonymous):

you didn't expect market makers to give it away so ez - did you? they need to reload share #preearning, wat better than #freakyfriday $AAPL

and

market makers have plans to run $AAPL and force squeeze I think, look at the same 4 share trades

In true Twitter form, these two Tweeters voice what is an all-too-common concern among AAPL longs and ardent fans. This stock simply cannot fall as the result of any old flavor of uncertainty or even the technical overtones of its parabolic chart. Mere mortals cannot "make" AAPL fall. It must be the work of something more sinister -- the evil market maker!

And, of course, with it being options expiration week and all, conspiracy theorists have even more fuel to add to their fire. The misuse of terms like "pinning" and "maximum pain" hits a rapid Tweet Per Hour (TPH) pace whenever AAPL drops in value, by more than 1%, during OpEx week.



9 Stocks That Prove Dividends Make All the Difference Before I continue, let me clarify something. I mean no harm to Apple (or AAPL). I love the company. In fact, I admire it. It's the best America has to offer, possibly of all-time. I consider Steve Jobs one of the most brilliant men to ever walk the face of the Earth. And I own several iPods, an iPod Touch and I am saving my pennies for iTV when it finally gets released. I just don't love AAPL stock. I don't hate it either. I am not even indifferent. That's important. I feel as little emotion as humanly possible (indifference is an emotion) when I think of AAPL stock, or any other stock that matter.

All I care about -- at least in one compartment of my life -- is making money in the stock and options markets. You reduce your chances of accomplishing this goal when you allow yourself to get emotionally invested in a stock. That's rule No. 3 (next to buy low and sell high and short high and cover low) of investing: Never let your emotions take hold of your brain, your trading platforms and your long-term taxable and tax-deferred accounts. If the sentiment on Twitter and elsewhere across the Internet provides any reliable indication, loads of AAPL longs are breaking that rule.

1 2 Next › Last »