Posterous theme by Cory Watilo

The Undertrader


Laying to rest the Myths of Wall Street

$$ Thanks for the discounted $AAPL shares dumb-dumbs!

As expected Apple stock dropped today and, as expected, the good traders are buying a ton of shares at a huge discount.  If you didn't get your $15-25 discount on Apple today, you're missing a great opportunity.  This stock is heading to $400 no matter what anyone does.  The financials that will be reported at the end of the day will be through the roof and it will only grow this year. 

Dumping the stock on news that is completely irrelevant in the short term was a big mistake.

Invest in peace...

$$ how I'm playing $AAPL part 2

I thought about this all day and I think tomorrow is a golden opportunity. I now think I'm going to dump some of my other stocks ($bks and $hd) to increase my cash and I'm going to buy the dip in $AAPL.

If you think about it, even if Apple never made another product, their income from iTunes, the iPhone AppStore, the iPad AppStore and the Mac AppStore is a bigger cash cow than 99% of the companies on the stock exchange and only growing. There's no stopping Apple in the next year.

So, sell your shares suckers, I'll buy them off of you.

Invest in peace...

$$ Steve Jobs is out awhile. How I'm playing $AAPL

Well, today Apple announced Steve Jobs is taking a medical leave, so of course idiots are going to sell off tomorrow in droves. Of course, this is stupid because a) Apple has plans in place for at least a few years into the future b) Tim Cook is a great leader and Apple will do just fine wig him there c) Steve Jobs is a FaceTime call away for any major decisions d) there is no company on the planet doing better than Apple.

So, the timing of the news. It was perfect. Make it Te talk of the town when the market is closed. Get rid of the gut reactions. Tomorrow is the earnings call and I guarantee it will be through the roof.

IPad 2 is coming, Verizon is coming, iPhone 5 is coming, the App stores are firing on all cylinders. Apple will only become more profitable this year.

So how do we play it? I will be putting a stop loss down where I'm not longer willing to wait out a drop. I'm willing to bet there is a drop to sit through, but at $310-$320 I may as well get cash to buy more shares on that kind of dip. It will fly back up after the initial dip though. Its a $400-500 stock.

If you don't remain longterm bullish on Apple, you're nuts. Use the dip to gain shares.

Invest in peace...

$$ $TGT Target is moving to Canada buy it up!

Target just announced they are buying up Zellars stores in Canada. If you haven't been to Canada, that doesn't sound like a big deal, but Zellars are all located in prime mall locations. This is a huge move for Target and will totally drive the profits up.

The only issue in Canada is Walmarts are nice, not crapholes like they are in California, so there is competition there, but Target will have the prime mall locations.

Now I just need Tim Hortons (THI) to come to California.

Invest in peace...

$$ Beep Beep Beep? You hear that noise? That's $AAPL moving in the money truck! $VZ

Yesterday Verizon and Apple announced the iPhone is coming to Verizon.  While it was no secret it was coming, people were excited to hear the news.  Of course, Apple went down on the news because...well...people are stupid.

Apple will have millions of sales on Verizon, but not only that, millions more apps will sell, millions more iphone cases will sell, etc.  They just backed a huge money truck up and will be killing it in the following quarters.  And don't forget, the new iPhone should be out later this year, iPad 2 is on it's way too.  And what if they turn on app purchases for AppleTV?  You can bet on that coming too.  Oh, and btw, the App Store is such a success that the devs can't even keep up with it.

If you think Apple is going anywhere but $400 or a split, you're crazy.

>>> If you haven't checked it out yet, check out the brand new Undertrader's Stock Advisor app in the iTunes store.  It's what I use to trade.  <<<

Invest in peace...

$$ How I use my Undertrader's Stock Advisor App....

This little post is just a little rundown of exactly how I use the Undertrader app.  Thanks to all of the people who have purchased the app so far, I hope you find it as interesting and easy as I have for the past few years.

First of all, the reason I created the app (and use an AIM type strategy) is because it takes most of the emotion out of trading.  It's going to give me good advice.  Could a stock continue to climb?  Sure.  But it could also crash.  Money in hand gives you opportunities, so I prefer to cash out little by little to be able to be flexible in my trading.  With that said.  What do I do?

I launch the app Friday nights after the market has closed and I click on Price Update.  This gets the latest prices and updates my advice for each of the stocks I own.  If I have any buy or sell advice I take them into consideration over the weekend.  Is this a good selling point?  Do I want to 'vealie' the sale (IE: Pretend I did it, but keep the shares invested like I do with Apple lately.)  Is the stock going to drop more, giving me a better opportunity to buy the dip?

On Sunday I decide what to do and I enter my trades, all LIMIT orders, good til cancelled.  Then I just let them sit.  They usually get triggered Monday morning and if they don't trigger, that's ok with me.

On Sunday evening when I'm doing this I take a look at my Watcher View.  I run the Price Update and I look at the top few stocks listed.  Are they stocks I'd like to buy?  Is there a reason for the dip?  Is the dip overly large for no good reason?  I'll hop into good opportunities with a limit order on Sunday night and see if I get the stock on Monday.

What I don't do is day trade with this app.  This app is intended for long-term trading.  You could look once a month or once a year if you wanted.  Take your time, take your profits and invest in name monopoly stocks and you will come out ahead in the long-term.

Invest in peace...

$$ Start of the week recap...$AAPL, $BKS, $KO, $WWE, $SIRI

Now that the Undertrader app is in iTunes I'll be posting daily since it will interest me more.  Here's a rundown of where I'm at, what the app is advising me to do this week and the top 3 potential buys of the week in my watchlist.

Where I stand today
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Apple (AAPL) - I'm up 74.55% on this and not selling.  I vealie the crap out of this stock.  It's going higher, much higher.  Especially with the Verizon iPhone coming out this month and iPad2 coming soon.  You're crazy to sell this stock.  I pray that this splits.  If it does you can just back the Brinks truck up to your door.

Barnes & Noble (BKS) - I'm up 18.11% on this one.  I'll probably dump it soon, but their e-reader was a huge seller at Christmas.  Will that translate into virtual book sales?  I doubt it, but we'll see.  They're a distant 3rd to Amazon and Apple.

Berkshire Hathaway (BRK-B) - I'm up 22.25% on this.  It's a long-term hold.   I vealie the gains, but I buy the dips.

Chesapeake Energy (CHK) - I'm up 22.63% on this one.  I always buy this stock going into winter since they are a huge natural gas company.  People tend to want to be warm in winter.  

Home Depot (HD) - I'm up 18.48%.  I don't really care about this stock one way or the other, but it dipped hugely, so I bought it off my watcher list in the app.  Cha-ching.

Kellogs (K) - I'm up 1.93%.  Not in the double digits yet, but it will be ok for now.  Short term holding, bought on a dip.  Watcher View stock.

Coca Cola (KO) - I'm up 18.92% on this one.  Long term keeper.

Sirius Satellite (SIRI) - I'm down 37.03% on this one, which sounds like a lot, but it's a penny stock, so it's not a lot.  This is my high risk stock.  I bought a crapload of shares because they are cheap.  They have turned around the company and made it profitable AND Howard Stern is now streamable on the iPhone app for the next 5 years.  In other words, anyone, anywhere at anytime can listen to Howard Stern.  That should bring in subscribers who can now listen on headphones at work easily.

World Wrestling Entertainment (WWE) - I'm down 11.38% on this, however, I'm buying the dips going into Wrestlemania.  I make this play every year and it usually works out.  WWE is in a talent dip right now, with only one real start in John Cena, however they are sitting on a gallion dollars and they are in talks to have their own 24-7 cable channel.  Since they own all of the WCW, ECW and WWF footage, they will make bank on a wrestling channel.  I just hope they dump the stupid movie company idea.

Overall, I'm way up.  Way up.  Nuff said.

This weeks sales
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The app is telling me to sell more of AAPL, I'm of course vealie-ing that.  No way I'm selling, but the Vealie will reset that sale in the app.  I vealie until it says to Hold the stock, just so you know.

I will be selling off a few shares of Barnes & Noble (BKS) and Chesapeake Energy (CHK) to lock in some profits on those.  Just a few shares, about 10% of each position.

Top 3 Potential Buys this Week
------------------------------------------------
The top 3 potential buys in my Watcher View this week are:

Best Buy (BBY) - While this company looks good on the outside, they are getting killed.  Amazon, Apple.com, Dell.com, etc are quickly eroding their profits.  You could probably make a quick buck on them, but I wouldn't hold this longterm.

McDonalds (MCD) - Always good to get McDonalds on a dip.  Best real estate company in the U.S.

Target (TGT) - This is really at it's average, but I'd consider buying this one.  Great company, better than Walmart in California.  You could probably make some money.  

Hope this helps you guys, thanks for buying the app!

Invest in peace...

$$ The Undertrader's Stock Advisor App is available now in the iTunes store!

After a long, long process, the program I use to trade stocks is finally available on the iTunes store.  You can click on the link in the top right to check it out!  This is my trading style, fully automated in an iOS app.  This is how I trade.

Hope it helps people.  Email me comments and requests and bugs and all that anytime.  I'll be glad to improve and expand it.  Hope you like it!

Invest in peace...

  
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