This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Trades to Take After the "Obama Crash"

Apple

First up is $524 billion tech behemoth Apple (AAPL - Get Report). This huge stock has been pulling back hard over the past couple of months, giving back 20% of its price as anxiety ramped up over whether the firm could justify a $700 (or even $600) price tag. But the selloff could be coming to an end -- here's what to look for.

Apple's trouble started up around the $660 level, when the stock triggered a head and shoulders top. Traders who shorted there had the chance to grab the lion's share of the move down. But even though Apple's drop has been big, it's only taken shares through one weak support level on the way down. That's important -- it means that the selloff has been "easy" rather than a meaningful exit from Apple spurred on by conviction selling. In other words, the stock has dropped because it moved through a range where there haven't been any buyers to begin with.

But there are buyers nearby. There are buyers right around the $558 level where shares closed yesterday, in fact -- it's a price that's acted as a floor for AAPL several times in the past, so it's a spot where Apple's drop could very well end when buyers start thinking that this Wall Street darling looks cheap again.

That said, I'd recommend very strongly against trying to catch the bottom in Apple; support levels do fail, and when they do, you don't want to be left holding the bag. Instead, wait for a bounce off of S1 -- the bounce lets us verify that those buyers are still hanging out at $558 before putting cash in the trade. We'll probably see that bounce today.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.00%
BAC $16.75 0.00%
EBAY $59.72 0.00%
F $15.27 0.00%
INTC $33.45 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs