At that time, the i-Everything producer had dropped 9% from its $702.10 closing price, while iShares DJ Technology (IYW) had slipped 4.3%.
Then came an inauspicious earnings report. Later, an executive shake-up gave investors indigestion. By the close of business on Friday, the mighty Apple (AAPL) found itself down 17.8%.
And that's not all. For the first time in nearly 12 months, the price of one share of the largest company in the world by market capitalization had fallen below its long-term, 200-day moving average.Put another way, the last time the exceptionally popular device maker breached its 200-day, shares traded at $365. Raise your hand if you wished you had been confident enough to take a bigger bite... anyone? After all, a 92.3% unrealized gain in less than a year is not too shabby. At roughly $575, it may be a stretch to project AAPL hitting $1,105 by next November. Then again, scores of analysts have already gone on record with the $1,000 per share call by year-end 2013. In other words, it may not be entirely crazy to show some love. (You know you wish you had on the previous go-around.) Keep in mind, AAPL fell 16% in the May-June gloom of this year. That correction turned out to be a fairly decent opportunity for traders. What's more, if you're looking for a healthy helping, you could look to IYW with its 24% weighting in the corporation. Granted, IYW is close to correction levels itself, having plummeted 9.8% since September. It has also breached the 200-day trendline. Nevertheless, you can choose to buy the dips on a fund that holds mega-brands like Oracle (ORCL), International Business Machines (IBM) and Google (GOOG). Simply employ a stop-limit loss order to protect against the possibility that the pullback in tech morphs into a bear market mauling. This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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 + 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