Let the Day Traders Sell Apple — You Should Keep Holding

by Jeff Reeves | July 25, 2012 9:32 am

Let the Day Traders Sell Apple — You Should Keep Holding

Well, by now you should all know that Apple (NASDAQ:AAPL[1]) reported a rare earnings miss[2] Tuesday evening. Shares sold off more than 5% after the bell, bounced back a bit but still were down 4% at Wednesday’s open.

I’ll cut right to the chase: If you’re a swing trader, it might be wise to consider Apple a trouble spot in the near term. But if you’re a long-term investor, this is one of the best positions to be in — so do not panic.

Regarding the short term, here are the risks:

aapl 300x210 Let the Day Traders Sell Apple    You Should Keep Holding
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Ugly stuff, right? No wonder Apple is down and could drift lower for a few weeks. But here’s why if you’re a long-term investor, you shouldn’t be shaken:

Jeff Reeves[16] is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.”[17] Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he owned a long position in Apple.

Endnotes:
  1. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  2. rare earnings miss: http://investorplace.com/2012/07/apple-no-perfect-quarter/
  3. global economic picture is bleak: http://investorplace.com/2012/07/7-reasons-to-stop-trading-until-thanksgiving/
  4. Q1 earnings in October 2011 missed: http://investorplace.com/2011/10/goldman-sachs-bank-of-america-ibm-earnings-market-summary/
  5. 36% earnings surprise and saw profits soar 118% year-over-year: http://investorplace.com/2012/01/apple-earnings-nasdaq-aapl-iphone-sales/
  6. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  7. RIMM: http://studio-5.financialcontent.com/investplace/quote?Symbol=RIMM
  8. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK
  9. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  10. DELL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DELL
  11. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  12. Surface: http://investorplace.com/2012/06/who-fits-into-microsofts-surface-ecosystem/
  13. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  14. CMG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMG
  15. ugly earnings: http://investorplace.com/2012/07/chipotle-stock-crash-was-overdue-cmg/
  16. Jeff Reeves: http://investorplace.com/2012/01/2012/01/2012/01/2012/01/2011/12/alcoa-aa-stock-limited-downside-high-upside-stocks-to-buy-in-2012/2011/12/2011/12/investors-can-learn-from-denver-broncos-tim-tebow/2011/12/gold-prices-new-record-2012-buy-gold/2011/12/2011/12/2011/11/2011/11/2011/11/market-rally-bank-stocks-financial-sector/2011/11/3-dividend-commodity-stocks-vale-scco-si/2011/11/2011/10/optimism-about-europe-debt-resolution-a-risk-to-market-rally/2011/10/2011/10/2011/10/no-bear-market-for-5-funds-etfs-slv-gld-thd-xrt-fdn/2011/10/author/jeff-reeves/
  17. “The Frugal Investor’s Guide to Finding Great Stocks.”: http://www.amazon.com/dp/B007KB9CSI/ref=rdr_kindle_ext_tmb

Source URL: http://investorplace.com/2012/07/let-the-day-traders-sell-apple-you-should-keep-holding/
Short URL: http://invstplc.com/1fzMIBK