Bull Horns & Bear Claws -- Weekly Wonders With QQQ & What About Apple?
There has been some excellent trading volatility in the markets the past few weeks. A few weeks ago the ( QQQ) trade in the newsletter was profitable -- around 20-30% if you were able to monitor it -- and last week I published a ( QQQ) strangle, which was a different trade from the newsletter. We got a 200% return on the call side in 1 day, which isn't too bad.
We saw the QE4 pop last week, but then violent selling in the last few days to end the week. I like to put on the weekly straddle or weekly strangle on Thursday or Friday, sometimes Monday. Must be the holidays, because I didn't do it this week, and it would've been another good week to do so.
Apple ( AAPL) has been kicked enough. It's back to $525 as of this writing, but we saw $500 again the other day. While the stock may be broken, THE COMPANY IS NOT. I have gotten emails, messages, whatever... What's Apple going to do next? Tomorrow? I don't know. Next week? Don't know. 2nd week of January? Dunno.
Here's what I do know. Apple is the biggest and the best company here in the States. Sure, Samsung may hold the claim to smartphone world domination. But Apple owns America, and its going to do well in China and when they get a deal done with China Mobile ( CHL) it's game over. Fantastic company, ton of catch, great products. What more can you ask for?
Maybe a deep discount -- which you have -- and I think this one is a "buy" if you're looking beyond the scope of a few months. It might break $500, certainly if Mr. Market gets crabby around the Fiscal Cliff Deadline. But longer-term, 6-12 months, I think this stock will be rockin' and new highs will be there. For what it's worth, I have no position currently, so I'm not just pumping nonsense.
Apple went parabolic, but it eventually came down. It's share price retraced to its long-term slope and while I think the volatility will remain elevated, the stock will be fine. If that's too much to worry about, you could own the QQQ's, which has a 20% stake in Apple. That's safer, with less volatility and I have an article about from a few weeks ago. I actually do in a retirement account, instead of owning Apple.
You could also own Qualcomm ( QCOM), the supplier. I have written and am writing an article about it now, but Qualcomm is the main chip supplier to Apple. Same with the Nokia Lumia, various tablets and tons of smartphones. The boom is in smartphones...not just iPhones, Lumias, Galaxies, whatever. Smartphones and tablets are the boom and Qualcomm is the main chip supplier in all of this. Not Broadcom ( BRCM) or Intel ( INTC).
I read a book once, called the Reminiscences Of A Stock Operator and it had a line in there as to the "secrets of investing." It went something -- but not word-for-word -- like this: "The secret to investing is never buy at the bottom and never sell at the top." At first, it seems like the exact opposite of a secret, but ultimately, it's great advice.