Steve Jobs Steps Down as Apple CEO: Is the Stock a Buy or a Sell?

Will the departure of the legendary Steve Jobs as Apple CEO provide a catalyst for broader profit-taking in the stock market? With the stock trading lower by as much as 5% in the afterhours Wednesday evening, is the stock a buy or a sell?

Shares of ^AAPL^ closed higher for a third day in a row ahead of trading on Thursday. The stock’s rally came courtesy of a four-day pullback that took shares of AAPL into oversold territory above the 200-day moving average for two days in a row.

AAPL chart

AAPL has not earned PowerRatings higher than 8 all year. So upgrades to 7 have served as alerts to swing traders using PowerRatings that the stock had pulled back toward levels from which, historically and statistically speaking, AAPL has moved higher in the short term.

Recent rallies in the wake of PowerRatings upgrades to 7 in Apple are just one set of examples of how PowerRatings upgrades have helped traders identify potential opportunities in the market for AAPL shares.

AAPL2 chart

No one knows how the departure of Steve Jobs from the position of CEO will affect Apple.  Jobs reportedly will remain with the company as Chairman of the Board.  And the likely new CEO, Tim Cook, is someone who has played understudy to Jobs for years.

But when it comes to short term trading of the stock, the principles of high probability trading and resources like PowerRatings remain among the best ways to determine both when and how to trade stocks like Apple – even when a man who is likely one of America’s greatest CEOs is no longer running the show.

For more on trading stocks using high probability trading principles, click the link below to learn more about the Fall Semester of the Swing Trading College. Led by TradingMarkets founder and CEO Larry Connors, the Swing Trading College is a 10-week program dedicated to helping traders become the best traders they can be, using 21st century technology to grow and manage their money smoothly and consistenly over time.

10 Weeks to Trading Mastery: The Fall Semester of the 2011 Swing Trading College

And if you want to learn more about swing trading stocks using PowerRatings, click here.

David Penn is Editor in Chief of TradingMarkets.com

Have You Switched to ConnorsRSI?

ConnorsRSI is the first Quantified Momentum Indicator -- the next-generation improvement to traditional RSI indicators. At Connors Research, we are using it as an overlay to many of our best strategies to make them even better -- now you can, too.

Enter your email address to get your FREE download of our Introduction to ConnorsRSI - 2nd Edition - Trading Strategy Guidebook with newly updated historical results.

Disclaimer: The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.