This Hedge Fund Manager Sees No Reason To Be In Apple

JC Parets is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday–Friday at 8 a.m. ET here.

Eagle Bay Capital Founder JC Parets told Benzinga's #PreMarket Prep that there was no reason to trade Apple Inc. AAPL until it breaks to either the upside or downside. As long as the price is mired in the $120 to $135 range, he advised traders to "look elsewhere" because it is "dead money."

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Parets Explains

Parets said that his firm had a $129 price target on Apple, which was hit in February. "There's been no reason to be in this [name] ever since," he added. "Until we either resolve to the upside of the range or break to the downside, I don't see any reason to be involved in this."

Parets said the same of the overall market.

Since hitting a February high, the SPDR S&P 500 ETF Trust SPY has moved from 204 to 212. Any traders that have tried to buy dips and sell the upper end of the range are doing well, though any other traders "have been getting thrown around."

"You want to be in things that are trending," Parets added. "Look elsewhere. There's always other places to be," he said.

One of those "other" places has been to short Market Vectors Gold Miners ETF GDX. Though that sector hit Parets' downside target, he says that now the opportunity is to fade strength.