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STEVE JOBS’ SHOES LOOK TOO BIG TO FILL AFTER APPLE’S SECOND MISS UNDER COOK

July 25, 2012

Apple (AAPL) reported much anticipated earnings after the market close. Earnings were a big miss. There is no value to be added by regurgitating the numbers as Connie Guglielmo has already done an excellent job of reporting the details in her piece Apple Sales Miss Estimates, Shares Fall As iPhone Pause Begins. As I carefully studied Apple’s earnings release and information provided on the conference call, I was reminded of Shakespeare’s Twelfth Night, “Some are born great, some achieve greatness, and some have greatness thrust upon them.” This is Apple’s second earnings miss under Tim Cook. After the second miss, the scrutiny of Tim

GOLD AND SILVER SPIKE ON THE FED LEAK

July 25, 2012

Yesterday at about 3:45 pm EDT, WSJ published a leak from the Federal Reserve. Such leaks are usually deliberate on the part of the Federal Reserve. Here is an excerpt from WSJ of the leak: Federal Reserve officials, impatient with the economy’s sluggish growth and high unemployment, are moving closer to taking new steps to spur activity and hiring. Since their June policy meeting, officials have made clear—in interviews, speeches and testimony to Congress—that they find the current state of the economy unacceptable. Many officials appear increasingly inclined to move unless they see evidence soon that activity is picking up

$31 MOVE IN APPLE PREDICTED

July 24, 2012

An analysis of options trading in Apple (AAPL) shows that traders are expecting a move of about $31 in shares of Apple post earnings. As usual, bullish option players out number bearish option players, but to a lesser extent than in previous quarters just before earnings. In my analysis, a move over $50 isn’t out of the question. The reason is that there is an unusually high variance between analysts’ estimates for the last quarter as well as for the current quarter. One of my favorite Apple indicators is my Apple email indicator, and I get a large number of emails

4 FREE LUNCHES BEFORE APPLE’S REPORT

July 24, 2012

On Tuesday after the market close, Apple (AAPL) will release earnings. The consensus estimate is $10.35 for earnings per share and $37.23 billion for revenues. There is a big variance between the estimates by analysts. The low earnings forecast is for $9.45 a share while the top end is $12.51; for revenue, the low estimate is $34.54 billion, and the high is $41.73 billion. There is also a big variance in estimates for the next quarter. The low estimate for earnings is $9.18 a share, and the high is $12.53; the low for revenue is $34.18 billion, and the high is $44.15

TAKING PROFITS ON QQQ

July 24, 2012

This post was just published on ZYX Short Sell Change Alert Consider taking profits on QQQ right here around $63.05 and exiting the position.

LOWERING QQQ STOP

July 24, 2012

This post was just published on ZYX Short Sell Change Alert Consider lowering QQQ stop to $63.52.

PLAN ON QQQ

July 24, 2012

This post was just published on ZYX Short Sell Change Alert Based on the new earnings data, our plan on QQQ has changed. Teh new plan is to take profits and exit the position. Conservative investors may simply take profits right here in the pre-market around $63.52. Aggressive investors may put a protective stop at $63.77. As the day passes and the stop is not hit, we will be looking for an exit point. Stay tuned.

WEEKLY MARKET DIGEST: EARNINGS BETTER THAN THE WORSE FEARS

July 21, 2012

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.) MADRID PROTEST BRINGS MARKETS DOWN July 20, 2012 Police fired rubber bullets on protested in a huge demonstration in Madrid against austerity. 39 people are reportedly injured. Yield on Spanish bonds has surged over 7%. After a string of earnings better than the worse case scenarios, GE disappointed this morning. Some of the positive move in the stock market this week is technical in nature as it relates to option expiration. Expect a volatile day ahead. Gold