Apple Inc. (AAPL), even the non-traders know this company, is on the losing for more than a week. Has it lost its mojo? I don’t care. No cool products coming in? I don’t care, Apple has always been in its element of the cool anyway.
So what makes Apple’s bad news a good news? Well, part of the SWAGGER’s philosophy which is basically textbook philosophy are; Buy On Bad News, Buy On Fear. Anyone can read anything about AAPL elsewhere but I’m focusing on the what really matters from the SWAG perspective. Pulling off the charts we can see SMA(20) blue line over EMA(13) red line meaning a SWAG cross is inevitable that will trigger a technical buy signal but the actual cross is not the point where you should buy, it should be before the cross. The fear is characterized by the direction of the Money Flow Index which is going below 20% oversold. Forget about what the robo-adviser is telling you, entering beyond 20% oversold is really buying the fear. The Parabolic SAR is still in bearish trend which makes AAPL less attractive to the fearful.
What do you get from buying on bad news? You can buy at the theoretical bottom, you can buy at a better deal, cheaper price and then wait for the SWAG signals to do it’s thing, let the profits run. Sell when happy to the greedy.