Chart of the Day: Looking at Apple as a New Chapter Begins
Cheers to John Ternus, who takes over the helm at Apple ($AAPL) after an amazing run by former CEO Tim Cook.
During Cook’s tenure Apple stock rose 2,200%, a staggering figure that equates to 23% annualized returns. During his 15 years the stock became the most valuable company on the planet (currently though it is #2). Just imagine owning Apple stock during that period and nearly doubling your position value every four years for nearly a 15-year period. “Own it, don’t trade it,” says Jim Cramer. That was the best advice of all time.
With a strong move up earlier in the week Apple stock is ready for a much larger move higher. September is often a quiet time for most stocks, or even some selling hits, but for Apple there is usually some excitement. The company often comes out with a new iPhone model in September, getting the public energized for the holiday shopping season, which starts in a couple of months.
The chart of Apple is constructive and bullish, with a bull signal on MACD, solid momentum (stochastics), and relative strength climbing. There is some weakness in the Chaikin money flow at the bottom but that looks to be correcting.
Volume trends are neutral. A bit of sideways consolidation would be fine and just normal for Apple as we start this new month.
We like Apple in TheStreet Pro Portfolio and rate it a Two, or “stockpile on pullbacks.”
More Pro Portfolio:
- We’re Accumulating More Shares of This Oversold Holding
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- August Monthly Roundup: Maintaining Our Lead Through the Ups and Downs
At the time of publication, TheStreet Pro Portfolio was long AAPL.
