Steve Cortes Is Shorting Apple

Mar 15, 2012
J. Webster
Comments Off on Steve Cortes Is Shorting Apple

With Apple hitting an all time high today of $600 a share, many traders were wondering if that was the top for the stock for a while, thinking it needs to take break and rest a bit. Over on Fast Money’s Halftime report, Steve Cortes said he’s going to short Apple. Why? Well, he bases this short thesis after looking at a chart of Google. What? Yeah, seems strange:

“I haven’t touched Apple in three months, but I think it’s time to get back in on the short side,” Cortes said on “Fast Money.” “The main reason: When I look at charts, I look at Google from late 2007, in late November 2007, and overlay Apple, present tense, over that chart it looks incredibly similar.” (CNBC)

One can’t forget that Steve Cortes also said that Apple wasn’t innovative anymore. And that was back in May of 2011 when shares of Apple were trading for around $350 a share. Sure, Apple might be a short right now, but long term this stock is only going higher and higher and higher.

Perhaps one thing to watch for with Apple though is when they announce their plans for a dividend or what they’re going to do with the nearly $100 billion they have in cash. When they make that decision the stock might have topped out for a while. Of course, this depends upon what they do exactly with all of that money, but it seems like once that news is out of the stock it could take a rest and stop rocketing higher.

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