Apple shares are at an inflection point, says StockBrockers.com's Jessica Inskip

According to Jessica Inskip, director of investor research at StockBrokers.com, Apple (AAPL), despite being down over 20% year-to-date, is at an inflection point around $195-$200 and has the potential to move higher, with resistance up to $260; she suggests a wheel options strategy to capture premium. Inskip also noted that Nasdaq (NDAQ) should benefit from the move to 24/7 trading due to increased global access and the need for more liquidity, particularly in options trading. However, she advises caution on UnitedHealth (UNH), citing a bearish trading cycle and a 'buy the dip' mentality without conviction of earnings follow-through, despite potential rallies to the $240 level.

Analysis

Jessica Inskip of StockBrokers.com presents distinct technical and strategic outlooks for Apple, Nasdaq, and UnitedHealth. Apple (AAPL), noted as underperforming the "Magnificent 7" with a year-to-date decline exceeding 20%, is identified at a crucial technical inflection point between $195 and $200, with chart analysis suggesting potential upside towards $260; a wheel options strategy is recommended to capture premium and establish a neutral short-term but bullish long-term position from this support. Nasdaq (NDAQ) is anticipated to benefit significantly from the transition to 24/7 trading, which is expected to increase global market participation, necessitate greater liquidity, and drive higher trading volumes, particularly in options, thereby positively impacting its revenue streams from increased activity. Conversely, UnitedHealth (UNH), which has fallen over 39% year-to-date and attracted "buy the dip" interest leading to its inclusion in the Schwab Trading Activity Index, warrants caution; Inskip highlights that UNH is in a bearish trading cycle and, while a technical rally to approximately the $240 level from pre-Covid support is plausible, she advises against investment without strong conviction in earnings follow-through, drawing a parallel to speculative retail buying in GME.

Key Decisions for Investors

• Investors observing Apple (AAPL) should note the significant technical support around $195-$200, which could serve as an inflection point for a move higher towards $260, and may consider implementing a wheel options strategy to capture premium while managing risk on a potential long-term bullish outlook.
• The impending expansion to 24/7 trading for Nasdaq (NDAQ) presents a structural growth opportunity through increased global access and trading volumes, particularly in options, which could positively impact its financial performance.
• Caution is warranted for UnitedHealth (UNH) despite its substantial year-to-date decline; investors should be wary of the 'buy the dip' mentality given its bearish technical cycle and the analyst's lack of conviction in earnings follow-through, even if a short-term rally to $240 materializes.