I have been very bullish on AAPL for the last few months for many reasons. First, I believe that AAPL has phenomenal fundamentals and is poised to grow at a faster rate over the coming years. I believe that with the iPhone 6 and 6 Plus, AAPL’s margins will increase along with the ASP. This should help EPS and Revenue grow at a much faster pace. Second, AAPL has an amazing growth opportunity in China, and I think that this should increase earnings substantially. Lastly, Apple Pay and the iWatch should keep investors excited for the time being. Regardless of whether you think these products/services will make a dent in AAPL’s earnings, it is enough to keep investors optimistic that AAPL is continuing to innovate. Putting aside how great a company AAPL is, it is important to look at the technicals to see where the stock is heading next.
Ebola… just last month 35% of Americans thought it was a capital city in Africa. Today the panic is growing after a doctor in NYC is confirmed to have the virus. If you read enough of the comments about it, it seems he’s been busy licking door knobs, wiping his blood on restaurant utensils, and purposely missing the toilet when taking a leak.
The fear is palpable. Pretty soon 50% of NYC will be walking the streets adorned in full Ebola gear. While everyone is busy worrying about the end of the world, the stock market continues to move higher. Ebola who?
Another massive rally in equities yesterday,
The first confirmed Ebola case has come to New York City and with it an evening full of jokes on twitter.
Stock futures took a tumble on the report, but have recovered much of those losses. Since the lows last week the market is back in the ‘buy the dip’ mode, and as long as this one Ebola case doesn’t spread, the market should recover, although $AMZN earnings aren’t helping. The stock is down over 10% after reporting a dismal quarter.
Here is some of what I am reading this morning:
To say it has been a crazy earnings week, would be an
Microsoft reports earnings tonight after the bell.
The stock stock sits $3 from its recent record highs. I am making a trade based upon where I see the stock heading after tonights earnings report.
The panic selling of last week has turned into panic buying this week. The stock market that couldn’t stop falling last week now seems impervious to downside. In human form this market would have a serious case of panic disorder, treatable, but possibly disabling. In stock market form, all this patient needs is a few kind words from a Central Banker to soothe its soul.
Markets looked to continue their winning streak,
While most Americans were sound asleep this morning, stock futures, for a second time in three trading days rocketed higher. On Tuesday morning the excuse was that the ECB would be buying corporate bonds. The ECB denied that but stocks still held their gains. This morning’s ramp higher is being blamed on strong earnings reports? We had terrible earnings reports lift stocks higher earlier in the week.
Stock futures are higher and have brought stocks all the way back from yesterdays sell-off. It’s like yesterday never happened.
More earnings are on tap today with $AMZN leading the charge after the bell. $CAT is soaring higher on the heels of a big earnings beat. If the market can rally 3% on a day when $IBM declines 7%, just imagine what today may bring with $CAT and $MMM rocketing higher. Here is what I am reading this morning: