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Time to make money trading Apple stock, are you ready?



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Apr 04 2008
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Apple Inc.’s (Nasdaq: AAPL, stock) next confirmed earning announcement is on 23rd Apr 2008, slightly less than three-weeks away. Assuming the Dow Jones could floats above 12,000, this stock that tumbled from it highest of $202 to lowest of $115 a share seems to be ready for the next wave. I blogged how I mauled at Apple Inc.’s AAPL May 135 Call Option on 25th Mar 2008 because it’s neck was sticking out of the 50-D Moving Average (read here). Of course I had closed the positions the next day but not before I opened new position on AAPL May 140 Call Option (read here) and have been holding it since.

Now Apple is trading above 50-D Moving Average and is moving towards the 200-D Moving Average. Chart-wise, I’m monitoring and keeping my finger-crossed that the stock could find a comfortable support level above $150 a share. Above $150 it should have a smooth sailing towards $190 *grin*. If you’ve not make any money during its previous rally or worst still lost some money (got hit at the top) but were too afraid to commit “Put Option” during its $80 dollars drop, a new opportunity could be smiling at you now. But please watch out for the $150 level.

Apple Stock ChartThere’re other goodies that you should know and should serve as justifications to hold on to the stock (if you long on Apple Inc.). Apple Inc.’s iTunes online music store leaped past Wal-Mart Stores Inc. in February to become the top overall music retailer in the U.S. Interestingly social-networking MySpace said on the same day it will launch its own music service, in partnership with three of the biggest record labels namely Vivendi’s Universal Music Group, Warner Music Group and Sony BMG Entertainment to rival Apple Inc. Besides free advertising-supported streams of songs and videos, MySpace visitors will be able to purchase restriction-free song downloads, ringtones and other merchandise. But it’s too early if such venture could kick Apple out of picture in big way.

iPhone out of stockOf course the major news that moved Apple’s stock was the confirmation by the company itself that it’s facing iPhone shortage and not handset problem or component shortage as rumored. Some believed the reason for the shortage is that Apple simply can’t keep pace with the extraordinary demand for the iPhone overseas, so much so that there are Nigerians shipping more than 500 iPhones weekly from New York to Lagos. Apple spokesman Steve Dowling says the company is “working to replenish iPhone supplies as quickly as we can.”

It was reported that there are at least 7 million potential iPhone users in Nigeria, 9 Million in South Africa, 80 Million in India, 25 Million in Russia, 25 Million in Brazil, 8 Million in Indonesia and 100 Million Nigerians love iPhonein China. A mere 5 percent from this mind-boggling figure would still translate into 10 million units. In terms of compatibility, the quad-band GSM iPhone works seamlessly with an estimated 2 billion GSM phones users worldwide.

As the darling of the gadgets, such shortage also invited other rumors. One such is that Apple was actually gearing towards new model hence the tight supply. Many also said Apple underestimated its iPhone demand but there’re also reports that truckloads of iPhones were being hijacked or stolen. Whatever the reasons, the craze for iPhone is still puzzling. So, you know how to play this stock and make good money out of it, don’t you?

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Comments

Yeah ..you are right.. it took me great pains to buy my Iphone. There were sold out like hotcakes in the Applestores..

hello kris … since you’re having difficulties getting iPhone, i guess i was right that apple stock has only one way to go – North *grin* …

i love iPhone too …

cheers …

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