Apple shares just hit a record. Here's how trader Mike Khouw is playing the move
Even as broader tech names and momentum plays have faltered, Apple has hit new all-time highs.
Apple's surge to a record high is notable, especially given the recent struggles of other tech stocks and momentum plays. This divergence suggests that investors are still confident in Apple's growth prospects and the company's ability to maintain its market dominance. As a trader, Mike Khouw's approach to playing this move is likely focused on capitalizing on the stock's upward momentum while managing risk.
The fact that Apple has been able to buck the trend in tech stocks may be attributed to its strong brand loyalty, diverse product lineup, and growing services segment. Additionally, Apple's large market capitalization and liquidity make it a staple in many institutional portfolios, which can contribute to its relative stability. As investors continue to rotate out of high-flying tech names and into more stable growth plays, Apple may continue to benefit.
Going forward, traders will be watching to see if Apple's momentum can be sustained, particularly in light of upcoming earnings reports and product announcements. Key levels to watch include the stock's current all-time high, as well as its moving averages, which can provide insight into the stock's trend and potential areas of support. Additionally, investors will be monitoring Apple's valuation and growth prospects to determine if the stock's recent surge is justified.
Originally reported by cnbc.com. Trade-News adds analysis for finance & markets readers.