How to Profit from Apple’s (NASDAQ:AAPL) Coming Dip
Mar 17th, 2009 | By Charles Delvalle | Category: Chart of the DayAs much as I love how shnazzy Apple Inc (NASDAQ:AAPL) computers and electronics can be, it doesn’t take away from the high cost of Apple’s products. And this is set to cause AAPL some pain in the year ahead.
That’s because in this market, cheap is king.
Considering Apple sells laptop and desktop computers at a $500 – $1,000 price premium, consumers feeling the pinch of the recession are likely to shy away from buying an Apple computer in the short to medium term.
And this kind of pull back would undoubtedly hurt AAPL’s share price.
This is a chart AAPL that goes back to the end of September.
As you can see, AAPL has formed a nice consolidation pattern (I talked about these here) that has held since last November.
Basically, every time Apple hits $100 a share it drops. And any time it hits $83 a share, it climbs.
Here’s my big, bold prediction: AAPL is heading south. Short AAPL (or buy a put option if you’re feeling saucy) and ride the sucker down to $83 a share.
That’s a nearly 20% profit.
Always remember to play it safe by having a stop-loss before jumping into the play.
Advertisement
Bullion Vault, #1 for direct gold ownership
* 8.5 tonnes of gold
* Over 55,000 users
* $250m in client holdings
Bullion Vault: the online gold market to buy gold, own, and sell gold at current gold prices. Gold trading - from one gram up.
Find out more about the most cost-effective route to owning gold today and claim your gram of free gold here.

Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".
