Apple Stock is Flashing Buy Signals

Yesterday, the Fed raised rates by 50 basis points. No surprise there, as the market was expecting it. However, following Chairman Powell’s remarks regarding (not considering) future 75 basis points cuts, this was enough for the bulls to come out of the woodwork.

Interest rate decisions are one of the most important decisions the Fed can make as they can have a large impact on inflation. Many people believe that inflation is bad for the economy, but this isn't always the case. 

Inflation can actually be good for the economy when it is moderate and manageable. It stimulates growth and encourages spending, which can lead to increased economic activity. However, when inflation is high and uncontrolled, it can erode purchasing power, cause economic disruptions, and lead to higher prices for goods and services. And in 2022, we've all felt the pain of inflation.

Following Chairman Powell’s announcement, indexes (including recently battered tech stocks) found some new light. And today, I’ll focus on one stock that’s flashing buy signals: Apple.

What are stock buying signals?

There are numerous stock buying signals that investors and traders can use to help them make decisions about when to buy or sell a stock. Some common signals include technical indicators, price patterns, support and resistance levels, and moving averages. While there is no surefire way to always pick the perfect time to buy or sell a stock, using these signals can give investors and traders an edge in making informed decisions.

One of the most commonly used stock buying signals is moving averages. A moving average is a simple technical indicator that calculates an average price for a set time period, such as the past 20, 50, or even 200 days. While some investors prefer P/E ratios, I prefer to use moving averages as it gives me a clearer indication of whether or not a stock is cheap - based on the efficient market. P/E ratios, on the other hand, differ based on sectors. And sector to sector P/Es are irrelevant. For example, Coca-Cola’s P/E of 27 cannot be compared to Tesla’s P/E of 123. 

However, moving averages are not the be-all, end-all. They can be used in conjunction with other indicators, such as support and resistance levels, to attempt to get in and out of positions and ideal times. Other common stock buying signals include price patterns, such as triangles and head and shoulders formations. 

Ultimately, there is no set formula for picking the perfect time to buy or sell a stock. However, by using stock buying signals like moving averages and price patterns, investors can give themselves a better chance of making successful trades.

In Focus: Apple

Apple Corporation is a multinational tech company headquartered in Cupertino, California founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell personal computers. It was incorporated as Apple Computer, Inc. in January 1977, and sales of its computers, including the Apple II series, grew quickly. 

Today, the company designs, develops, and sells consumer electronics, computer software, and online services. The company's flagship products include the iPhone smartphone, the iPad tablet, and Mac computers.

Today, Apple is one of the world's most valuable companies. In fact, on January 3, 2022, Apple became the first three trillion-dollar company. Its products continue to revolutionize the way we live and work, and its innovative business practices have earned it a loyal customer base. No matter what the future holds for this iconic American company, it is clear that Apple will continue to play an important role in shaping our society for years to come.

Apple Buy Signals

Since 03/22/22, there have been 10 buy signals for Apple. We can find all the recent buy signals by searching for a stock at the top of your screen, then clicking “Top Trade Alerts” on the left-hand sidebar.

The most recent buy signal was issued on 05/04/22 based on the 50-day moving average. 

We can find Apple’s moving averages by clicking the Technical Analysis link on the left-hand sidebar. There, you will see Apple’s 50-Day Moving average is $165.50. And since Apple closed above this price on May 4, 2022 - a buy indicator was issued.

Ultimately, there is no set formula for picking the perfect time to buy or sell a stock. However, by using proven stock buying signals like moving averages and price patterns, investors can give themselves a better chance of making successful trades.