APPLE INC

156.82 +0.97 (+0.62%) Sell

Don't give up on AAPL now, it gave a fairly good return

13 min read

APPLE INC is looking better than most other alternatives today. It grew by +0.62% to close at 156.82. It's recent 5 day performance has been +0.59%, +1.22%, +2.05%, -1.5% and -0.98%.

[Themes containing AAPL]

AAPL showed a strong down trend over the last 3 months. During this period AAPL returned -28.49% and saw a maximum drawdown of -36.16%. There was a short signal during this period which returned +28.49%.

Trend

AAPL has been underperforming the SP500 index in recent time, after having outperformed till 23 Oct, 2018. Over the last 3 years and 14 days, AAPL outperformed the SP500 index on 52% days.

During the last three months AAPL was mostly loss making and delivered on average -0.5% per day. It's best return during this period (of +7.04%) was on Wednesday, 26 Dec, 2018. While it's worst loss in the same period (of -9.96%) was on Thursday, 3 Jan, 2019. There was initially a bearish trend during this period which started on 8 Nov, 2018 and went on till 14 Nov, 2018. The trend delivered -11.49% losses to investors. This was followed by a bullish trend that started on 15 Jan, 2019 and ended on 18 Jan, 2019. This bullish trend delivered +4.48% to investors.

On monthly basis, AAPL delivered losses in more months over the last year, than profits. AAPL delivered profits less regularly than SP500 index. AAPL significantly outperformed SP500 index in Aug 2018, when it returned +19.62% compared to +6.4% returned by SP500 index during it's best month in the last one year - Jan 2019. AAPL had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Sep 2018 to Jan 2019) during which period it delivered -36.15%. It is interesting to note that both AAPL and SP500 index significantly outperform during months when quarterly/annual results are announced.

"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.

AAPL is becoming less volatile overall. In comparison, the SP500 index is seeing a fall in volatility. During the last three months, there was a significant surge in AAPL's volatility from 19 Oct, 2018 to 27 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 22 Oct, 2018 to 27 Dec, 2018.

Advanced/professional short-term investors should note that AAPL has significant positive skewness in it's return distribution. This indicates that investors can expect AAPL to recover from drawdowns quickly. Which makes AAPL a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in AAPL derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than AAPL. Therefore, SP500 must receive a lower allocation than AAPL in your portfolio. AAPL usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in AAPL), three instruments that deserve special mention are AYTU, GSUM and DOGZ. They have all outperformed the market and must be closely watched for investment opportunities.

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