Apple (AAPL) stole the show on Monday, the headline show. The stock's performance was ho-hum, but the big news centered around Apple's Vision Pro VR set. The most eye-popping note seems to be the $3,499 price tag.
It isn't the first time Apple has pushed the pricing boundaries on its products. Virtual reality sales may find tougher sledding than iPhones or iPads, or even the Apple Watch. First, they aren't a necessity for many. Second, the $3,499 price tag is equivalent to a higher-end computer but with significantly fewer offerings. Of course, computers can run considerably higher in price, as with most things, but $3,500 will procure a trader a solid computer.
I'll admit that Apple product unveilings remind me of the good old days. It seems the reveal of the iPod wasn't all that long ago. And the original iPhone. And the Apple Watch. And far too often, I recall seeing a sell-the-news reaction like today.
With shares more than 40% year to date and barely taking a breather during the last 20% of the move, a pause here could be the pause that refreshes. At this point, I expect the stock to test its 21-day exponential moving average (EMA), but I would really love it if we tested the 50-day EMA as we did back in March. That's where I, and probably half the market, would love to pick up some shares for a trade.
Let's add a small asterisk to that pullback. An orderly move lower over the next six to 10 trading days would be a necessity for me. A sharp drop would probably scare me off and have me looking elsewhere.
In a slow week for news, expect Apple to continue to garner attention and volume over the rest of the week. Consequently, a reversal above Monday's highs would warrant consideration for a long trade with a stop around the 10-day EMA and the use of a trailing stop on any move higher, possibly the 5-day EMA or the previous day's low. In a slow week, look for the attention star of the show. Right now, that's Apple.