Apple stock has given me the best monthly return of my entire 13 year trading career in February. (28.17% in February my trades are all called on twitter). Amazingly For the last 150 points in movement for Apple I have been inundated with bears on twitter and facebook telling me it is the top and can not go higher. It is too big to succeed and grow. It is over, it is doomed to fall. I simply trade price movement with trailing stops and risk guidelines, I do not try to predict and I certainly do not try to give unsolicited advice to people winning in great trades. So I just do not understand how these bears trade? What is their method? Are they so arrogant that they believe they can predict a price better than the majority of market participants? The most amazing thing is that after being wrong for 50 points up and we pull back 10 they gloat about calling the top, before the next uptrend begins.
So with that said I have a few questions for them:
- Why would anyone fight one of the greatest stocks in the history of the stock market by shorting it? The money has been on the long side and has been amazing this year.
- Why call a stock that is simply pricing in current earnings and growth ‘parabolic’? For me 20%-50% moves is parabolic not 1% a day moves.
- Why do you think this is a ‘bubble’ internet stock? It has the world’s hottest products and billions in earnings, triple digit earnings growth (+116%) and 73% sales growth last quarter. This is a real company with just under $100 billion cash on the balance sheet.
- Is this stock over valued with a 15 P/E and a forward P/E of 10?
- Why is this company too big to grow after crossing the $500 billion market cap? Exactly what competition will stop it any time soon?
- Why do you fail to understand that Apple’s earnings grow through consuming competitors sales and even other industries? They are the innovators, they are the conquerors, they win.
- Do you think they can’t go on with out their leader Steve Jobs? I assure you his proteges have been well trained through his in depth involvement with each product.
- Do you think Apple is just like every other stock? It is not just a company and a stock, it is one of the top companies and stocks of all time based on stock price growth and market cap.
- Do you really believe that you can pick the price top in Apple? That is about the worst risk/reward trade that I can think of in the entire market. Top pickers have now been wrong every time and every day over the past decade.
- Why are you so worried about all the Apple bulls making all this money? Are you jealous?
I have a large watch list and I am not married to Apple. I do go to cash with losses of the 5 day ema and large spikes in volatility. I have different sizes of positions based on risk/reward set ups. I trade in the money call options for amplified returns. I use stop losses and trailing stops. One day Apple will end its reign as king. One day competition will out innovate and win. One day Apple will hit its final all time high and never retake that price. However friends as far out as I can see this is the stock to trade, to invest in, to trade options with and to enjoy the profits while they last.
BULLS > “Stay Hungry, Stay Foolish” -Steve Jobs