As I have talked about many times on this site, the market’s opinion changes rapidly. What was popular yesterday could be the black sheep today. Let’s take a look at Apple for a minute. This popular tech stock was as low as $78.20 only a few weeks ago. It, along with Google and many of the other tech names were hated by investors. Tech stocks were in a slump with barely any investors seeing any life. Tech was in stock market cardiac arrest. Fast forward to yesterday and we see Apple at $99.72. Google was as low as $247.30 not very long ago and as of yesterday Google was at 371.28.
One of the reasons that I believe investors have been a little bit anti-tech is the “one step forward, two steps back” movement in them. (At least I know that that is true about this investor) Apple has moved in a wide trading range but hasn’t gone anywhere. We get positive news about Steve Jobs, then negative news. Slumping IPhone sales then a surprise on the quarterly earnings report. One piece of good news causes a rally. Investors jump on board then something happens and the stock goes in to a free fall.
Right now Apple is looking to go above $100 next week. My advice, sell it when you make a little bit of profit. Then, wait for it to go back down and ride it up again. If the pattern holds true, that may be the way to make money in tech right now. Watch the technicals and ignore the fundamentals. At least a little bit. We have to admit that Apple is always a thrill ride in its news cycle.