The co-founder of StockTwits saw an opportunity this week to take his oversized position back to normal.
From Shedding Some Apple and Crazy Investment Facts, a note posted Saturday from Tuscany:
Apple closed this week at $185
When I last checked in here on my oversized Apple position, the stock crossed $165 to the upside and I wrote ‘Apple Survived‘. A month earlier I was buying the Apple crash too early and it looked like Apple would never stop going down.
This week I sold some Apple. There are many other technology stocks I could have bought last November and December that have done better that Apple in the rally from the December bottom.
That is just the nature of picking stocks…
In Tuscany, the $VIX (measure of volatility) is always 4, but in the United States a $VIX reading of 12 is one of the reasons I feel like selling some Apple stock right now feels prudent. In December the $VIX exploded past 30 as Apple crashed to $150. This chart really captures how bad December got.
My take: I subscribed to Lindzon’s e-mail newsletter last fall because someone told me he had a large and influential following. Good call. I always learn something.