Why Frank Zorrilla Won't Trade Apple Like A Momentum Stock
Frank Zorrilla says he trades everything.
“You can have a value stock that gets momentum,” he said. “It could be a small-cap. It could be a value play. It could be a beaten up play. If you’re talking about Facebook, LinkedIn, Twitter, I trade it.”
But when it comes large-cap companies, Zorrilla is not looking to buy breakouts. Zorrilla explained that he has a scan on large-cap, S&P 500, Dow Jones companies, etc., so he gets an alert if the stock has been down three days in a row and is up today.
“A company like Apple, I’m a buyer of that stock on pullbacks,” he said. “I think if you’re looking to trade breakouts, small-caps is the way to go.”
i don't own $TSLA but someone in the market for a tesla is not because of high or low oil prices
— Frank Zorrilla (@ZorTrades) December 8, 2014
Zorrilla’s recommendation for playing big names like Apple is to wait for when the stock is down for three days and then up for one, or down from the 20-day or 50-day moving average, then buy on the pullbacks.
Check out his full interview here:
Don’t forget to tune in to Benzinga’s #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for a live, interactive morning show with veteran traders and featured finance industry experts ready to answer your questions for the trading day.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.