Now as you know AAPL isn’t my typical play, but since I’m awake 20 hours/day thinking about all potential profit angles, this one’s popped up on my radar. THIS 3G iPhone news has whipped the no-stock-market-experience-geeks into a frenzy as if they were strippers on coke and the usual stock-market-talking-heads are now running around as if they were about to utter something meaningful for once (nahhhhhhhhh, that’ll ever happen!), so I gotta interject. And remember, my word actually means something cuz not only is my trading account up 40% in the past 6 months, I nailed how Visa would perform (initial VMW-type price rise, but slightly more conservative, before quick drop off, seriously…months before its happened, read my article HERE), but most importantly, a few months ago before its 40% drop, I smacked all those AAPL cheerleaders with $300 price targets across their big fat fee-earning, research-lacking faces by urging caution at $200…see glorious article HERE)
Now I return to this playground because, thanks to this news, the upcoming price action might just turn out to be pretty damn predictable. All because, as with any new potential blockbuster product, people love to speculate on bigtime success…momentum buyers enter, short sellers exit and the stock breaks out to new highs before the new product even hits the shelves.
It’s called anticipation.
And with AAPL only $20 off its highs, it’s easily within range of a breakout and actually fulfill those cheerleaders’ $300 price targets. Unsurprisingly, those cheerleaders will get more vocal and actually help make their prediction come true, inevitably taking credit, saying they were right all along, you just needed patience.
Ah, the Wall Street game of hype, BS and self-fulfilling prophecies. You gotta love it and more importantly, you gotta profit from it. But make sure you wait for the breakout cuz until then, it’s just a triple top, rendering the talking heads and geeks useless.
Posted in Hot Stocks, Potential Plays, Story Stocks