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Random Thoughts: Apple, RIM, Facebook, and the Financials


Crosscurrents galore as earnings and expectations collide.

Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.

Yesterday morning, I shared the following fare in real-time on the Minyanville Buzz & Banter:

"In individual plays, three stocks that pop out are Apple (NASDAQ:AAPL) (while I hear DeMark is warming up to this bellwether, we have long been watching the $500 level), Research In Motion (NASDAQ:RIMM) (the stock continues to act great into the BB10 launch, now up 140% from September 2012 levels) and Facebook (NASDAQ:FB), which is 70-odd percent higher than the $19 level we flagged in October, albeit 18% below the IPO price)."

"My 'gut' would be to fade (read: buy) this break of $500 in Apple for a pure trade. As that risk is not yet definable, I'm gonna pass, but felt compelled to share my take."

Last night, almost on cue, Tom DeMark appeared on CNBC to opine that "the bottom is in" for Apple and the stock is now enjoying a double-digit gain. $500 remains an important technical toggle for bulls and bears alike; draw it with a crayon (it's a $500 stock) but see both sides as we continue to find our way. Apple reports next Wednesday, so keep that in the back of your mind, especially if you're trading the options, which are inflated ahead of the catalyst.

Research In Motion, meanwhile, is up another finski (5%) in front of the BB10 launch. If you employed the trailing-stop methodology discussed yesterday, you're still there...and your stops are rolling up in kind.

Facebook, meanwhile, is digesting the recent move and will report earnings two weeks from today. The same caveat on the "fat" option premium holds true, so factor that into your equation if you're playing with this social puppy. Again, everyone and their sister will be looking for its ability to monetize mobile, which is both the obstacle and opportunity for growth (not just for Facebook, but across the media spectrum).

In terms of this morning's reports, JPMorgan (NYSE:JPM) and Goldman Sachs (NYSE:GS) both beat estimates, but 1) earnings are rearview, not forward-looking, and 2) the reaction to news is always more important than the news itself (those stocks are currently mixed). BKX (INDEXDJX:BKX) 52 remains near-term support for the financial complex, and we would be wise to remember that the insider sales window typically opens a few days after Goldman reports each quarter.

Good luck today, and I'll see YOU over on the Buzz.


Disclosure: Minyanville has a commercial relationship with RIM.

Twitter: @todd_harrison

Follow Todd and over 30 professional traders as they share their ideas in real-time with a FREE 14 day trial to Buzz & Banter.
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