Paul Meyer Buys Houses

Apple’s stock falling like Russia’s economy, double whammy!

Well as we all know Apple’s stock (AAPL) currently at $161 is likely to move further south in prices. Similar to Russia’s falling economy from communist old thinking practice and current socialism starving the economy from a bit of capitalism so is to say Apple Inc’s stock price. I’m a bit worried about Apple’s future too. Now AAPL has some great products, great hardcore customers, and lots of cash, but the truth is our economy is changing and there is plenty to prove it with many companies dealing with subscribers such as Sprint (S @ $8) and AT&T (T @ $38). Both companies and credit card companies are having more and more defaults in payments. This means small consumers that buy electronics and plans are having more trouble paying their bills creating less extra money for higher priced ticket items such as iPhones, Laptop Airs, and more expensive data plans. The Fed says slower growth, but the market makers will take that as “less sales, oncomming recession”. It is a double whammy blow to higher PE stocks such as AAPL, RIMM, GRMN, GOOG, BIDU, and solar stocks such as HOKU and FSLR. No wonder why these stocks have been dropping like Einsteins apples off trees with no reason to fight science floating in free air back up. Google (GOOG @ $600) says a lot about the market. It is a high growth stock with a low Peg of 1.20. By this time at the price of $600 it should consistantly be moving higher and hitting support levels which it isn’t. This also brings me to the point that if PE is falling then so will big stock prices as in the 2000’s.

We might just be receiving slow growth and the markets get a little choppy which should be understandable, but all off my technicals show to a downward spiral and I’m curious how low will stocks dip before real buying happens.

I loss my initial investment of $2000 + my $2000 in profits I made in the past month on the AAPL JAN CALL 220 options this month. I’m telling myself not to trade. Now that I’m at $0 in both of my brokerage accounts + my mobile home park was a total bomb with my lying property manager I’m in a bit of stress and panic. I should not trade when in panic. Yes. So once I can put it behind me so I don’t “revenge” trade trying to make back money that I lost. I’m not a shitty trader as much as I lose I do it making really stupid trades, not necessarily bad trades. My trades wouldn’t be bad as long as I sold out once I knew they were bad which I rarely do. I 100% of the time was them go to worth $0 and if I can just stop that thinking and get some damn discipline then maybe my life of trading can finally turn around.

I setup my automatic payment on my car to $1200 so I couldn’t get out of paying off my car debt off early. This way it will be paid off in around a year or less. My big fat student loan for my real estate purchase has hurt me the worst at 12% interest now I can’t pay it off as planned. It is being paid monthly and preventing me to pay off my home mortgage sooner. I’m in big doo doo as little kids call it. I stink of financial problems. If I am truly a financial ninja I should be able to get me out of them this year. I need to start saving before I get out of the military to have capital to do something with even if its moving to a third world country to retire on. I know I can do it just need the will power to do it.

2 responses

  1. I bought AAPL at 161 something, so I guess I don’t think it is going down. But I only bought 25 shares and will be watching on Tuesday PM US time. Maybe I’ll buy more then if the price action is good, or sell out of this if the price action is bad.

    January 21, 2008 at 8:08 am

  2. moom,

    First I think you are trading a bit more risky then usual. You bought AAPL during earnings release. Since you aren’t buying options the most you could lose is X points times 25 shares which isn’t much of a hit even if it dropped 20 points that would be a little less than -$500.

    All charts point downwards. I think safer bets would be like China Mobile. Although Apple is a great company it reacts to much to any news and falls and when markets do rally it is like a slug.

    January 22, 2008 at 11:00 am

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