Only reason my team has not shorted APPL after yesterday's convincing bearish close is because there is an earnings call today. Poor earnings will signal a substantial downward move for AAPL.
I agree, and more than likely they will not give guidance on the iphone 12 numbers as it was a late release half into the October month. I am slightly bearish on a strangle as earnings could be perceived any way WS wants to see it.
1) Monthly had a red blow off top signaling a potential reversal. Possible retest 10 month EMA @ $97?
2) Weekly MACD crossover, though holding the 10 week EMA
3) Resistance today at the 20 day EMA
4) Crossover on Daily ADX DI indicator back on Oct 21st indicating more selling pressure
5) Stoch on daily appears to be oversold, weekly flat and monthly turning over negative
Heavy selling volume yesterday, and not so convincing volume today for a 5% push.
This could go either way and it's surprising to me if it pushes higher unless they blow out earnings. Also looking for a fake upside pop and turn over to downside. Their accessory line where they have been making most of the 'new' money could prove to be another great quarter.
Hence the strangle...
JoeRodTrades
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@byzantine82, I have too look into the 97 you mentioned. I was thinking a drop to 103 with poor earnings. Also, I think lack of guidance is such a Covid cop out at this point.
byzantine82
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@InformantJoe, There is a strong support line on my charts that the bearish day touched yesterday. The fact it bounced so hard off of it today (bullish) though met resistance at the 20day EMA (bearish) is indeed a very indecisive move.
It's hard to fathom that apple would trade under $100, though overall indices are under pressure, and there is a gap that may refill back on July 31st last earnings. That happens to fall suit to that $97 price target if it fills it.
agree with the covid cop out haha, it's definitely used in their favor and they know it.
intelligentSal3542
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@byzantine82, I agree. Said same thing to my collegues today: 97$ is next for aapl.
mthompson45
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I agree with you and your team. I can't see how AAPL does not have a bullish day on the day they report earnings. FB has had the same situation and they are up $9.58 in Pre Market. I do believe after earnings is another story.
JoeRodTrades
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@mthompson45, Earning are fun to play up until the report. Sucks having to liquidate positions during earnings season but you can always get back into a trade :)
mthompson45
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@InformantJoe, I enjoy trading during earning season. However, what really gets me is look how good FB did yesterday and between 3:00 pm and 3:50 was a huge sell off. Then I was watching the post market FB at 4:09 was over $290 and then it dropped hard. Even though FB beat earnings the pre market has the Stocks down close to $5 a share. They also killed AAPL and AMZN. It use to fun opening your account the next morning to see the overnights and pre markets build the stock up but as of late every morning I check after the pre market and most of the stocks are in the RED. It is getting to the point where I don't want to hold anything overnight.