Monday, March 30, 2015

Is Apple Gearing Up For A Come Back?

Apple(NASDAQ: AAPL) has had a rough month in the market throughout the month of March. Between the botched Spring Forward event, the poor investor opinion of the watch, and economic pressure, it seemed as though Apple stock just didn't have a chance. However, the big question now is, will Apple bounce back this week as we move into April? I think they will. Here's why…

Apple TV Service Is On Its Way

If you could name one entertainment based service that you think the majority of Americans pay for, what would that be? Chances are, you're thinking about cable TV service. The average cost for cable TV service in the United States is over $64 and Apple aims to change that. The company plans to launch it's own set top box product that will give consumers access to streaming content from providers like HBO, CBS, and more. Apple said that the monthly service fee will range from $20 to $30 depending on the package and offer a low cost alternative to cable television.

Investors Know That Apple Is Strong Enough To Bounce Back

Apple is a huge company; the largest in the world by market capitalization. They didn't get so big by laying down their gloves every time the fight got a bit tough. The reality is that Apple has been knocked down before, and will be knocked down again. However, as soon as they take a hit, they make a hit in most cases. Look at the most recent decline for example. After just a few weeks of downtrends, Apple announces its plans for the new TV service; peaking investor interest once again. The bottom line is that no matter what stock we look at, we're going to see price fluctuation. Nonetheless, Apple is a company that is capable of changing momentum in the market quickly; and we should see the start of that next week.

Economic Blues Will Start To Subside

Last week, the market was hit by the realization that interest rates are going to increase and by the fact that durable goods orders dropped. However, the concerns over these issues seem to have subsided on Friday as the market started to adjust momentum, moving in a positive direction.

Although Apple didn't join the masses in the market with regard to moving to the green on Friday, I think that there's little resistance above the price at this point. The bottom line is that thanks to the poor market movement as a whole last week, Apple stocks are trading at a relatively low price; giving smart investors the opportunity to buy low in hopes of selling high. So, with reason for investors to buy and little resistance in the upward direction, I couldn't imagine the stock going anywhere, but up throughout the next week at least.

Final Thoughts

If you follow my writing, you know that I'm definitely an Apple bull over the long run. However, as a trader, that doesn't mean that you don't have the opportunity to earn off of short term price volatility. With that said, I hope you had a few in the money put options on the decline, and this week, it's time to start profiting on uptrends.

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