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Tuesday, July 13, 2010

Weakness in AAPL

Interesting weakness in AAPL. More interesting to me is that the market is not responding to it. Must mean the Quants stopped pegging it to the market.

The stock is at the 90SMA, and typically that is a buying opportunity.

I do not know if that will be the case this go around. There seems to be too much weakness on a strong day.

On a weak market day, AAPL may be pushed to 236 or so, and that is where I would like to add to the name.

I am already in the name, hence my desire to wait. But now is a nice entry point for a small initial position.

(And for those that think AAPL is expensive, you are wrong. Work out the numbers, back out the cash, do not just superficially look at the trailing PE. The current trailing PE is a false indicator of valuation.)

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