Stealing Apples While Others Panic (Update 1)

(Updates story from 10:17 a.m. ET with information in the last two paragraphs.)

NEW YORK ( TheStreet) -- Why wait to panic, let's do it now. The last thing we want is to be late in panicking, which might result in selling or shorting Apple ( AAPL) at a price other than the very bottom.

Maybe you were a little excited and bought near the top? It's not the time to repeat an emotional investing mistake and sell the bottom. That kind of investing is called buying high and selling low, the opposite of what you want to do.

I understand it's not easy to maintain a position while every other guest of CNBC is talking about Apple and answering questions about how long the selling will continue. CNBC did have a guest on after the market closed that if you missed, you'd wish you would have watched. I paid close attention to the price of Apple and CNBC after the financial show announced Tom DeMark with Market Studies was making an appearance.

I was especially interested in what DeMark would say because I was nearing the end of my research on this article. This article's primary catalyst was Apple's daily chart producing a TDCombo 13 today. I tweeted what I expected DeMark to say about Apple.
Robert Weinstein‏@RobertWeinstein
Thanks! RT @RobertWeinstein: $AAPL chart makes TD13. Not a buy signal, but I believe Apple selling pressure near end. Posed for move higher

When DeMark began speaking on "Fast Money," Apple was trading near $486 a share. By the time DeMark finished talking about Apple making an expected bottom either today or tomorrow, Apple moved up and over $490 a share, about 1% in a minute or two.

Rocco Pendola wrote a must-read article about the latest Apple hit piece Something Is Terribly Wrong, Just Not With Apple.

I expect more from The Wall Street Journal, and so should you. The good news is that you likely experienced the worst of the insane decline. Not because the Journal had it wrong, which I will get to in a moment, but because the stars are lining up in a buy direction for Apple.

Fundamental analysis and chart-ased market-timing lead me to believe now is the time to add or enter into an Apple bullish position.

Let's get one thing straight first. No one knows (outside of Apple) for sure what the iPhone sales numbers are, but based on real-world best "guesses," Apple sales are not slowing and are continuing to grow at a brisk pace. More importantly, the company as a whole is a money printing press that continues to accelerate.

I own a Samsung SIII phone, and I like it, but I don't believe its revenue/earnings per phone is greater than the iPhone 5. So when I read about Samsung and Google's ( GOOG) Android selling increasingly greater amounts of phones, I keep this in mind.

Another road kill called Nokia ( NOK) is making a lot of waves lately. Nokia's Microsoft ( MSFT) based phone has less than 5% market share. How can I say this delicately without annoying Nokia investors too much?

Who cares if Nokia doubled its phone sales? If your market share is 2% and it increases to 4%, you haven't really changed the competitive landscape. I'm not negative or bearish on Nokia, I'm just realistic. Apple is growing a $150 billion company at more than a 20% yearly rate. So, yes, maybe Apple will not grow market share 100%, but when doubling your market share results in a monopoly, that option is off the table.

Research In Motion ( RIMM) isn't much better than Nokia from a market share point of view. RIM is another stock I remained bullish with from around June of last year. It took some time, but it bounced back.

I still question if BlackBerry 10 will make much of a dent, but the intellectual property makes the company worth nearly $12 a share. RIM also produced a TDCombo 13 not long ago. It was on Sept. 21. The next day RIM made a bottom and hasn't looked back since.

What is on the table is a company with a dividend rate just north of 2%, a single digit forward price-to-earnings ratio, tons (latterly) of cash in the bank, market dominance, a brand people love to be seen with, and a payout ratio of only 6% of earnings. If Apple's board decides to raise the dividend or buy back shares, it's a done deal.

I can't say it with greater clarity, but after relative risk, what other stock even comes close? Let the market's craziness work in your favor. The market is crazy, and selling their shares based on fear, not because of the investment opportunity. If someone is willing to sell you shares for under $490 each, simply smile, say thanks, and buy as much as you can reasonably do so based on your investment objectives.

I've been at this a long time, and I am saying it just doesn't get any easier than this. Use options as a hedge if you want to manage your risk, but now is the time to get in. I'm a trader, but I tweeted that I was buying Apple on weakness on Wednesday.

I don't expect Apple to close and stay below Tuesday's low, and if another wave of weakness rolls in, capitalize on the fear to expand your exposure. Fortunately if you're not in yet, investors may reasonably expect some resistance near $515.

Let the price action enter the $514-$515 level and pull back. Your time to gain exposure is during the retracement. Don't expect the window to remain open long, but sitting on your hands and remaining disciplined is the key to managing your position instead of it managing you.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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