Buy Like Buffett or Pass on Apple After 10% Two-Day Skid?
During market corrections, they say the general fall last. At its peak, $Apple(AAPL.US$ sported a $3 trillion market cap, firmly entrenching itself as a market general.
It was joined by $Tesla(TSLA.US$ and $NVIDIA(NVDA.US$, two other stocks that have gone on to crumble as well.
Now though, the tides have been shifting as they have eroded away at Apple stock. Shares fell 5.2% on May 11 and were down another 5% on May 12.
Down 10% in two days and it completely demolishes the confidence investors had in Apple, as it was down “just” 15% from the highs before this recent fall — holding up almost twice as well as the Nasdaq.
Now 24% off the high and investors have a big decision at hand: Do they buy like Warren Buffet surely is or do they pass and wait for lower prices?
If Apple stock doesn't bounce, then it opens the door down to the low-$130s. That’s where we find the 38.2% retracement from the 2022 high down to the March 2020 Covid low. It’s also where we find the 161.8% downside extension from the March high to the first-quarter low.
$Berkshire Hathaway-A(BRK.A.US$ $Berkshire Hathaway-B(BRK.B.US$
It was joined by $Tesla(TSLA.US$ and $NVIDIA(NVDA.US$, two other stocks that have gone on to crumble as well.
Now though, the tides have been shifting as they have eroded away at Apple stock. Shares fell 5.2% on May 11 and were down another 5% on May 12.
Down 10% in two days and it completely demolishes the confidence investors had in Apple, as it was down “just” 15% from the highs before this recent fall — holding up almost twice as well as the Nasdaq.
Now 24% off the high and investors have a big decision at hand: Do they buy like Warren Buffet surely is or do they pass and wait for lower prices?
If Apple stock doesn't bounce, then it opens the door down to the low-$130s. That’s where we find the 38.2% retracement from the 2022 high down to the March 2020 Covid low. It’s also where we find the 161.8% downside extension from the March high to the first-quarter low.
$Berkshire Hathaway-A(BRK.A.US$ $Berkshire Hathaway-B(BRK.B.US$
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SpyderCall : pass until the margin call meltdown recession hits. then you buy at the low. if the recession hits that is
Always Hungryy SpyderCall: you think it will go to recession? fed seems calm though...
SpyderCall Always Hungryy: I do but not until next year or the following. I think we might even make new all time highs before it happens. Every recession except for like a couple i think have been caused by fed tightening. As soon as they mention tightening volatility picks up and the market drops. Then they start tightening and it drops more. But then it makes new highs before tanking into recession. I’m hoping for a repeat of past tightening cycles but the fed says soft landing and im going with the fed for now
Always Hungryy SpyderCall: hopefully exit out before it goes into recession. but the vibes I am getting seem to be a tempered slowdown rather than jamming the brakes. and that to me is reassuring.
Always Hungryy : maybe anotger hopeful green day...
https://www.cnbc.com/2022/05/16/stock-market-futures-open-to-close-news.html?__source=androidappshare
SpyderCall Always Hungryy: It is definitely reassuring. And it may be reassuring to know that even if you held through any recession in the past you would still be in the green today. If you were holding the major indices im saying
Always Hungryy SpyderCall: yeah I am a major stock guy. so if it goes down, one day it will come up. it's just a test of patience (difficult for me). how about you? what's your style?
SpyderCall : I have my long term account that i dont touch. But im more of a day trader options guy. I daytrade shares often as well like every day. But since i got better at calling these trends I’ve been doing a lot more options lately. Not everyday but very often. Only when im for sure its a good play.
SpyderCall Always Hungryy: Like i bought a spy call at close yesterday thinking we should go up because vix is breaking down from that rejection of resistance. I put it in a few of my posts. Its going to be worth a lot at open i hope. As long as we hold
SpyderCall Always Hungryy: I’m definitely selling it before Powell talks
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