I am holding two long picks going into Monday morning $AAPL and $MLNX. While both of the stocks are in very strong bases they are very near to all time highs and have the potential to pop up and run if the market price action stays healthy. This is the kind of price strength I like to see. Companies with huge earnings expectations that are leaders in their industry.

Apple’s P/E of 15 with a growth rate of 78% earnings per share growth rate annually gives it little downside,  stocks that are in bubbles that  crash tend to have huge P/E ratios of 75 to 100 not 15. This is a solid growth company and a value stock at the same time. I just do not understand how Apple bears think that this stock can roll over under $600.

Mellonox is just beginning its explosive triple digit earnings growth and has huge upside potential for parabolic price growth. With those earnings numbers and only 34 million shares that trade this could go up like a rocket in price.

Of course I will let my stops decide if I hold these positions or have to get out if I am wrong and they roll over. Time will tell, but for now I am long both while managing any potential losses through options, position sizing, and a planned exit.

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.