There is an old adage on Wall Street that goes something like this...
"Buy the rumor, sell on the news"
Many times in the financial markets, price is already factored in before the earnings news is released. This appears to be the case for both Apple (NASDAQ_AAPL) and Amazon (NASDAQ_AMZN) who both released earnings today (4-23-08) after the bell. As we showed in our latest Apple Amazon video, we expected to see these two stocks enter into a trading range. We also displayed in the video why we thought that both stocks were at the upper end of their respective trading ranges.
If we see downward pressure today in both Apple and Amazon shares, I think it will confirm that we are moving into a broad trading range for both these stocks.
Let's see how the day develops and how much profit taking affects the stock price of these two companies.