iPad Gains Could Lift Certain Tech ETFs

Apple's iPad appears to be a hit, so it's likely the stock will get a boost as will ETFs that hold Apple shares.
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NEW YORK (TheStreet) -- Apple's (AAPL) - Get Report much-hyped iPad, released this weekend, appears to be a hit which will likely bolster the company's stock price.

Consumer demand will be the driving force behind the success of the iPad and only time will determine the true impact of the device on Apple's bottom line. As for now, the outlook appears to be promising and is continued to add further support to Apple's stock price, which has more than doubled over the past year. It closed at $235.97 on Thursday.

Gains in Apple could also help lift the

iShares Dow Jones US Technology

(IYW) - Get Report

fund, which allocates nearly 10% of its assets to Apple, and the

PowerShares QQQ

(QQQQ)

fund, which allocates nearly 15.4% of its assets to Apple. IYW and QQQQ closed at $58.44 and $48.16 on Thursday, respectively.

Investors should be aware, however, that a slowdown in consumer demand could rain on Apple's parade. A good way to protect against such risks is through the implementation of an exit strategy that identifies price points at which an upward trend could be coming to an end. And in the case of Apple and the ETFs that have stakes in it, those price points have already been hit.

According to the latest data at

SmartStops.net

, an upward trend in shares of Apple could come to an end at $224.27. An upward trend in IYW and QQQQ could come to an end at the following price points: IYW at $57.16 and QQQQ at $47.13.

Written by Kevin Grewal in Laguna Niguel, Calif.

At the time of publication, Grewal had no positions in the securities mentioned

.

Kevin Grewal serves as the editorial director and research analyst at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Additionally, he serves as the editorial director at SmartStops.net where he focuses on mitigating risks and implementing exit strategies to preserve equity. Prior to this, Grewal was an analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.