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

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Crosscurrents galore as earnings and expectations collide.

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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)."
And…

"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.

R.P.

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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No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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