No doubt, shares of Apple dominate the thoughts of investors as few others can. Not only has the stock led the market higher during the bull market that began in March 2009 but it has gained more than 300%. That is a quadrupling and then some so naturally investors are asking whether it is time to cash in their winnings.
There are competing Wall Street sayings that apply: “let your profits ride” vs. “bulls and bears make money but pigs get killed.” To me, it seems that a leading edge technology stock with a price/earnings ratio of 15.8 based on this year’s estimates is not exactly priced for wild, unrealistic growth. That means following the trend until it tells us to get out.
One of the simplest ways to follow the trend is to use the 50-day moving average. Read the whole story…