Most” people ignore the opportunities that are right in front of them. “Most” people ignore the pattern that apple stock consistently takes. “Most” people play it safe and make a modest profit on apple stock through buy and hold principles. Apple people should not be “most” people!
These “most” people profess faith in apple, and, in some ways they show it (buying the iPhone), but when it comes to stock, “most” apple owners are just as oblivious as the rest of the world. The average apple stock owner still believes that apple fluxuates based on the state of the current US economy. Years ago that may have been true, but things have been different for a long time. Apple not only continues to have amazing growth in the US, during what many call a recession (note the millions of iPhone 3G’s sold in just days), but Apple also has a stranglehold on the rest of the world.
Because of the reliability of apple to astound on a regular and scheduled basis, the stock has followed an extremely reliable pattern for many years. I am specifically talking to you people on the apple finance board who sit on the computer every day watching the stock go up and down, and talking to each other about how it will go up as soon as you sell and you’ll lose more than is worth, so you sit and wait and never sell and let the months pass by. WAKE UP!!
The stock follows a beautifully reliable trend. If you claim even to be long term traders. Then sell your stock after every Macworld and WWDC, because after every one, the stock is certain to drop. The boards may be telling you otherwise, and the experts may say otherwise, but the facts remain. After every Macworld and WWDC the stock goes up a little then plummets for the next month (give or take a few weeks). THAT IS WHEN YOU BUY. When the stock hits a stagnant spot for 2-3 weeks. Then Apple begins it’s steady climb back up the charts.
The perfect example of this trend is being shown now. Why are apple stocks going down even with the iphone selling at record speeds? They are going down because apple wants them to go down. Steve Jobs is using his mind control powers to make them drop JUST FOR YOU. More seriously, have you ever noticed how unflattering Apple always in in its third quarter estimates of itself? I am going to tentatively site the Stevenote effect, aka the effect of the keynote given by steve jobs that makes apple stock drop after he announces new products. “Most” people are skeptical about this, unquantifiable thing, but what really matters is that it’s there. Just like every other apple product. We’re not buying it so we can question how fabulous it is. We’re just supposed to enjoy.
And just to help you people who need hard facts to convince you, this site shows the drops in apple stock since Jan 1998 to the present after the keynote adresses.
KEYNOTE INDEX
Chances are this won’t convince you anyways. If you’re worried about this being too general a policy of buy and sell to stick to, then you’re a smart person. The pattern that the stock takes is not always the same. Sometimes, especially recently, the drops after the keynote are bigger than others. When the iphone first was announced the stock drop was almost like lightning. A similar effect took place when the iPhone 3G became available. So it is essential to watch for what products are being released to gauge how soon you want to sell and when you want to buy back. The Bigger the product, the bigger the stock loss before it climbs back up for another big gain. I’m waiting for the touch/tablet computer that apple will be selling within the next four years. That will be another big stock opportunity.
So allow me to recap:
- Sell your stock within the 1st week after Macworld and the WWDC, depending on the expectations of the products, remember bigger product release = bigger stock loss.
- Buy back within 2 months after stock flattens and then gains 15 points or more and seems to be rising.
- Enjoy profits.
Allow me to stress however that there are minor fluxuations so it’s not a perfect system. But the pattern on a whole is reliable and this system will work pretty much all the time. Besides. “Most” of you will just ignore what I’ve said and hold on to your apple stock until the next ice age. Oh well :)