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The Chartman

It’s Time to Snag Some Apple Shares

We just saw a fairly gloomy week unfold, but maybe Friday provided a glimmer of hope.  Not only did the market seem to recover, but it may have bottomed near a longer-term uptrend line. I remain bullish and would much rather be buying now than selling.

I wanted to revisit Apple (AAPL) from a few weeks ago, as I noted it was time to start buying. But, I also said you needed to be prepared to buy MORE if it dropped another 15%.  That happened Friday and the lows it achieved midday provided an opportunity to further bulk up your portfolio. The conventional wisdom is to never double down or add more to a declining stock. However, I do the opposite if I firmly believe in the company and use their products. In fact, completely bucking popular opinion, I double down on my initial purchase when the stock drops another 15%. (That price was roughly $505, which it hit on Friday.)  

You have to be patient, of course, but now my breakeven on AAPL is $535. Heck, you could see that Monday morning.

Finally, Zynga’s (ZNGA) been in the news, and I’d be a buyer. It looks like it broke a very long downtrend line, and you have a low-risk purchase as the support is near by.

Again, I’m bullish on the market right now. Let’s see how the remaining six weeks of 2012 unfold.

Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."