1:00pm (EST)
Futures were already pointing towards a sharply lower open this morning after a number of “disappointing” earnings announcements, but the Dow is holding three fingers up as it struggles to stay afloat above the 10,000 level.
It’s been all about the revenue numbers, and we mentioned this as the one key element that could hold any rallies down or keep us in this tight trading range that seems to have lasted longer than unwanted company.
The Dow is currently down 86 points, or 0.9%, to 10,068 while the S&P 500 is down by 6 points, or 0.6%, to 1,065. The Nasdaq is getting hit the hardest but has bounced off its lows. The Tech-heavy index is down 22 points, or 1%, and was last seen at 2,176.
The key levels we were watching are 1,050 for the S&P and 10,000 for the Dow. And wouldn’t you know it. The Dow touched a low of 10,007 while the S&P 500 kissed 1,056. For the Nasdaq, we have been looking for 2,150 to hold and it has traded to a low of 2,159.
It’s sometimes scary to be so accurate, but this market has been in a trading range that feels like a bad tattoo for all to see. The bottom line is it has been predictable and a trading hell.
However, if these levels are taken out then we could see 9,800; 1,020, then 2,050, respectively, for the indexes.
The bulls have done a good job of bouncing off the lows but the test will come going into the close. The main event after the bell will be Apple’s (AAPL, $247.13, up $1.55) earnings, and it will likely be a market moving event in the morning. For the bulls’ sake, they better hope Apple can beat on revenues AND say something special in their conference call (a stock split?).
The company has routinely made stock-splits in the past but has been reluctant to do so during this barrage of new product introductions over the past 18 months. A 5-for-1 split would get shares back to $50 and more affordable for the small investor. It won’t change the company’s market cap so somebody tell Jobs to get on with it so we can trade options on the stock. We normally don’t trade options on triple-digit stocks because of the premiums. However, if Apple misses Wall Street’s estimates, then shares could easily sink 10%-15%.
We have some good updates for our subscribers in the Members Area so let’s get to it. We will be back at 9am in the morning with the news, and we can’t wait!
Tags: AAPL, Apple, Apple stock split, Apple's earnings, call options, how to trade options, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, volatile options
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on Tuesday, July 20th, 2010 at 12:59 PM and is filed under Apple, Company Commentary, Earnings, Market Analysis, Market Commentary.
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Will Apple (AAPL) Split After The Bell?
1:00pm (EST)
Futures were already pointing towards a sharply lower open this morning after a number of “disappointing” earnings announcements, but the Dow is holding three fingers up as it struggles to stay afloat above the 10,000 level.
It’s been all about the revenue numbers, and we mentioned this as the one key element that could hold any rallies down or keep us in this tight trading range that seems to have lasted longer than unwanted company.
The Dow is currently down 86 points, or 0.9%, to 10,068 while the S&P 500 is down by 6 points, or 0.6%, to 1,065. The Nasdaq is getting hit the hardest but has bounced off its lows. The Tech-heavy index is down 22 points, or 1%, and was last seen at 2,176.
The key levels we were watching are 1,050 for the S&P and 10,000 for the Dow. And wouldn’t you know it. The Dow touched a low of 10,007 while the S&P 500 kissed 1,056. For the Nasdaq, we have been looking for 2,150 to hold and it has traded to a low of 2,159.
It’s sometimes scary to be so accurate, but this market has been in a trading range that feels like a bad tattoo for all to see. The bottom line is it has been predictable and a trading hell.
However, if these levels are taken out then we could see 9,800; 1,020, then 2,050, respectively, for the indexes.
The bulls have done a good job of bouncing off the lows but the test will come going into the close. The main event after the bell will be Apple’s (AAPL, $247.13, up $1.55) earnings, and it will likely be a market moving event in the morning. For the bulls’ sake, they better hope Apple can beat on revenues AND say something special in their conference call (a stock split?).
The company has routinely made stock-splits in the past but has been reluctant to do so during this barrage of new product introductions over the past 18 months. A 5-for-1 split would get shares back to $50 and more affordable for the small investor. It won’t change the company’s market cap so somebody tell Jobs to get on with it so we can trade options on the stock. We normally don’t trade options on triple-digit stocks because of the premiums. However, if Apple misses Wall Street’s estimates, then shares could easily sink 10%-15%.
We have some good updates for our subscribers in the Members Area so let’s get to it. We will be back at 9am in the morning with the news, and we can’t wait!
Tags: AAPL, Apple, Apple stock split, Apple's earnings, call options, how to trade options, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, volatile options
This entry was posted on Tuesday, July 20th, 2010 at 12:59 PM and is filed under Apple, Company Commentary, Earnings, Market Analysis, Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.