Tuesday, October 18, 2011

AAPL earnings preview

AAPL reports earnings after the bell today. The bull bus on this ticker is heavily loaded so much so that if you say AAPL will go lower on earnings to someone, you will be looked like a fool. It is forgotten that AAPL is also a stock which has every chance to fall just like it rises.

In the recent days, AAPL formed a negative momentum divergence. I expect a pull back after earnings. You can also see sort of channel formed, right now AAPL is at the upper range of the channel.

We rarely short at the top. So, this is an advice to buy protection if you are long. If you have no position, please don't enter before earnings.

The day begins with sweet music from BAC and GS though.

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