Apple (AAPL) Patent Victory Sets Stock Flying

Apple (AAPL) stock today is up more than 2%, at a new all-time high, after winning a $1B settlement against Samsung in its patent-infringement lawsuit. AAPL sued Samsung on grounds that the touch screen technology in many of its smartphones and tablets violates the company’s patents, and the judge’s ruling in favor of the Cupertino-based company sets a precedent that is much more significant than the sizable monetary reward.

Samsung and other device makers now have to go back to the drawing board to examine whether their designs infringe on AAPL patents, leaving AAPL is a strong position heading into the release of its iPhone 5. The new Apple phone was already expected to see extremely high demand, but now, with some of its biggest competitors scrambling to re-make many of its signature devices, the phone should wrestle back an even bigger piece of smartphone market share heading into the all-important Holiday season.

AAPL has been a tremendous trading vehicle for me my entire career, and a great investment vehicle for investors with a long-term strategy. In the past I have written about how to trade Apple in the long and short-term. Last week, I made trades both long and then short in AAPL, first as it broke out to new highs, and then as it displayed relative weakness and exhaustion on Tuesday. Given how well it responded on Wednesday and held up through the end of the week, I bought back into AAPL Friday.

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While intraday AAPL is not trading on its highs, it has held and digested the gap well, perhaps readying for a run even higher as investors digest the truly far-reaching implications of the Samsung ruling. Watch the high of the intraday range, and then the opening price, for a break that could trigger further momentum.

Disclosure: Scott Redler is long AAPL, GLD.

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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