What's your recommendation for AAPL and NOK this week? AAPL looks hot but I'm afraid the price may be too high to enter.
Such a great question. Like most investors, I follow Apple regularly. And I’ve been watching it lately, contemplating adding to my current position. First of all, my mind is exactly where yours is, Apple looks like it may be overbought and is selling too high. The company just won a big suit against Samsung, which pushed their (Apple’s) stock to an all-time high. Also, it is anticipated that Apple is going to announce/release their new iPhone on September 12th as well as their iPad mini in October. What I’m wondering is, first, will these product releases drive the stock up or down? Second, if I feel they will drive the stock up, is there enough time between now and mid-September for the stock to dip down a bit (come off of the post-lawsuit highs) and offer a better entry price?
Of course there’s no way to predict the future but I’m confident that after not releasing an iPhone 5 last year, Apple will come through this year. Also, the iPad mini will probably be just as cool as the iPad was when it was released. So, long term, I’m very confident in Apple and think that, right now, it is one of those stocks to just buy and hold (I have a $35 trailing stop on my current position). But like you, I’m going to continue to look for a better buying opportunity with Apple. My hope is that the stock dips back down to the $650/$640 level within the next couple weeks. We shall see.
As for Nokia, with consistently bad fundamentals I don’t really trust the company. Unlike Apple, I would definitely not recommend this one for a long term play (just my opinion). But a short term trade may be worth the risk. I would watch for the stock to consolidate around the $3.00 level. If it can stay above $3.00 today and over the next couple sessions it may show that investors are more confident in the company and feel it is worthy of the new price tier. I would use $3.00 as the ‘protect from loss’ point and $5.00 as a profit target. Again, risky, but may be worth it. (Not a recommendation, just some direction. Definitely pay close attention to that $3.00 level.)