Strategist: If You Can Get Short Apple, 'By All Means' Do It
- Though outperforming this year, Apple Inc. (NASDAQ: AAPL) has slid 15 percent since its mid-July high, more than the Nasdaq.
- The Steady Trader Head Trader and Investment Strategist Serge Berger suggested that traders inclined to go short the stock could do so.
- Berger recommended that traders keep an eye on the 50-day moving average (just below $113) as an area where price should be constrained to.
Strategist Serge Berger suggested that traders would not be wrong to short shares of Apple, although he recommended the stock is better as a day trade than position. That's because the stock is "choppy," but is constrained within a nice range.
"If you can get short this stock, by all means," Berger said as he gave his blessing.
However, for Berger, the stock is more of a proxy for the Nasdaq Index or PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ: QQQ). Apple comprises roughly 15 percent of the Nasdaq's modified capitalization-weighted index.
Berger said that on Friday, Apple started to break down at the same time that the Nasdaq had a "horrendous outside day." After Monday and Tuesday's trading, Berger's prediction that "none of these things are holding up" seemed to be reaffirmed.
In the past five days, Apple shares have dipped nearly 4 percent.
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