12/20/2009 10:54:57 PM
Identifying fundamentally stellar stocks poised technically to breakout for big profits.
Apple Incorporated (AAPL) designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative customers.
Apple has stellar fundamentals led by terrific sales growth, strong earnings momentum and very impressive return on equity.
Apple has a nice long-term uptrend in place, which is being confirmed by the up trending On Balance Volume indicator (OBV). Couple this with the strong fundamentals makes Apple an attractive trade opportunity.
Trading Action Plan for the Week
Stock Entry: Buy shares of Apple (AAPL) at 195 or better.
Option Entry: Buy the April 190 call (APVDR) at 18.50 or better.
Profit Target Exit: 240.50.
Please note that we will use this price as an initial guide but we will gradually move up our trailing stop to realize as much of the breakout as possible while protecting our profits.
Stop-loss Exit: 180.40.
As the stock starts to breakout we will move the trailing stop up to protect any accrued profits.
Review of Open Positions
|Trade Date||Symbol||Trade||Trade Comments|
|11-23-09||HIG||Long the stock at 25.16 and long the January 25 call at 1.60.||Keep the profit target at 41 and keep the stop at 23.|
|12-14-09||CR||Long the stock at 30 and long the January 25 call at 5.20.||Keep the profit target at 38.10 and keep the stop-loss at 27.70.|
|12-07-07||DECK||Long the stock at 97.84 and long the January 95 call at 6.60.||Our trailing stop was hit. Sold the stock at 99.20 and sold the option at 7.50 for solid short-term profits on both.|
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