Tuesday, October 30, 2012

Apple post earnings and executive "shakeup"

6month daily chart testing 200day
As you know by now, Apple for its second earnings release in a row managed to miss at a time most individual investors expected an easy hit.  Institutions and market makers became skeptical of Apples earnings just two days before release due to a subtle "release" of an Ipad sales projection during the release of the new Ipad mini.  As Tim Cook continued Apple's usual quarterly Accolade announcement for sales, app store downloads, etc he happened to mention that Apple sold their 100 millionth Ipad just two weeks ago.  While this might sound attractive to the individual investor thinking about the staggering Iphone 5 sales the first week, along with the release of the product in a large amount of other countries prior to the end of the 4th quarter, September 29th.  Supply issues hung in the midst looming over Apple's head taking the stock from a high of just above 700 down to a near term low, along with testing the 200day after hours following earnings release.  As you can see on the 6 month daily chart, the 200day was tested, there is a clear down trend channel with some what bearing indicators.  This is a very important direction point in Apple where it decides whether it wants to test the 200day again, and potentially continue lower in the the high 500's following the channel on the chart, or break to the upside out of the channel, and attempt a recovery off of these short term lows.  Apple is a buy for me if it does one of two things, tests the 200day and bounces off of that major support for some upside, or rather break the channel to an upward trend.  Until then I will be doing charting and trading weekly options depending on market direction.

Also huge news at Apple that could be a short term directional indicator of mass psychology on wall st. senior vice president of iOS software, Scott Forstall, is set to leave the company next year after close to 15 years with the company, along with John Borwett, Head of Apple retail.  These are real key players at Apple, and al though the market has been closed for the past two days, 10/28, and 10/29, I am eager to see how the market reacts to hurricane sandy, and the reaction to the recent Apple miss and executive "shake up".

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