AAPL The Machine
Once again AAPL beats their earnings. After the long awaited report and speculation they will miss, the rumors were wrong. AAPL will once again break back its moving averages and go back to test the 644 high set on 4/10. With AAPL beating their earnings and being a leader for the stock market; the S&P 500 could once again try to make new highs. After the earnings report AAPL went from 560-600+, a $40 move which is absolutely amazing. Even with the worries of Spain, this is the catalyst needed to take the market to new highs for this year. Even after all of the sell signals that were in place from dipping below the moving averages and breaking down of the trend proved that the earnings report trumps the technical indicators in these crazy times. Now why did this big sell off happen?
One of the biggest reasons of this selloff was just the rumor that they would miss earnings from underperforming sales of their new ipad, iphones, tv, and mac books. It is evident that they were way off on that rumor since AAPL did beat their earnings. It is also possible that the market makers shorted AAPL down just to buy AAPL on this up. They have won it both ways now. Buy the fear sell the cheer had a big role on this play, but that theory does not always work. Why would people still invest in this company now?
To answer this is simple, it is just an absolute monster with no signs of slowing down. In just January alone it has made a $200 move. That’s right around a 50% gain on AAPL. AAPL will also be giving out a dividend in the near future which will encourage more people to invest in this company. With around 100billion free cash, investors could potentially see a pretty high percent dividend. With the share prices where they are at a small % will return a pretty nice quarterly income with AAPL since the downside to this company for a while is only looking up. This monster has a huge effect on the market in a whole; not just the United States, but world markets also.
After the earnings report on AAPL S&P 500, ETF, SPY, rose to above 138 after being down to 137.35 at the close. That type of move coming off of the earnings from shows the strength that AAPL has in the market. The market has been flat for the last 10 days while AAPL was selling off with all of the bad news coming from Europe. This is a major catalyst to move everything higher but with this move in AAPL to be the catalyst to move higher, the FOMC report is coming out tomorrow which could neutralize the good news in AAPL. The next few weeks to few months could supply some unique trading opportunities for everyone.