Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Why Apple And The Market Need To Retest The Lows

Harlan Pyan is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.

  • Apple Inc. (NASDAQ: AAPL) has gained more than 22 percent since its August 24 flash lows.
  • All About Trends Co-Founder Harlan Pyan said that he would like to see the stock move back down to the $102.50 or $103 area before initiating a position.
  • Pyan reminded listeners on Benzinga's #PreMarket Prep that "when in doubt," traders should "stay out." Apple is in that mode at the moment.
  • On August 24, Apple hit a low of $92 – though, according to Harlan Pyan, the "real low" in the stock is at the $102.50 to $103 range.

    Apple 'Is The Index'

    Pyan said that he would like the stock to retest those lows, noting that his bias at that point would be to go long Apple around those levels, assuming those levels do not break.

    If Apple were to move back toward those levels, Pyan suggested that the market – both the Nasdaq and S&P 500 – should move back toward its lows. That's because Apple "is the index. It literally mimics the index to a great degree," Pyan said.

    Related Link: Analyst: Apple TV Might Be Too Expensive

    If the market rolls over, Apple rolls over – and vice versa, Pyan noted.

    At present, however, with Apple trading at $113, the stock is "in the middle of no-man's land." And when in between levels, Pyan recommend that traders should shy away from initiating positions. However, they should ask themselves "what you need to see to take a trade." Again, for Pyan that would be a price around $103 per share.


    Image Credit: Public Domain

    See more from Benzinga

    © 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.