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.
Every success in life and in the markets,
Co-founder of MarketClub.com
12 thoughts on “Apple, Amazon Update ... did we get it right?”
I meant 10s of 1000s of new applications 🙂 Apple has reported some 200.000 SDK (software developers kit) for the iPhone have been downloaded, all of the game developers too, so it is expected that 1000s of apps will be announced to be sold through the iTunes Store. Since the iPhone runs a version of Mac OS X, most of those applications will easily be made available for the Mac and many will come out using both - say for instance you playing games on the iMac screen using the iPhone like a joystick / remote command. The same applying for the Apple TV where then the screen will be your 50" flat screen. So the iPhone will be once again contributing for Mac sales. Furthermore, the international hoopla coming from the iPhone being sold globally will also contribute to a very big increase in Apple's brand awareness thus eventually influencing an international increase in Mac sales. So it doesn't surprise that AAPL's movements are not conforming to your predictions or any one else's for that matter, we are indeed witnessing an extraordinary movement on this stock reflecting, like a teenager all of a sudden growing to 6feet tall, Apple's one time growth towards a major global electronics player. In my humble opinion. Cheers and keep up the good work!
All our Trade Triangles are a go for Apple since $180.00.
Hi Adam, What about Apple? Does it still conform to your Software's predictions? Has a green triangle already shown up or is AAPL now trading at a peak and it can be expected it's going to come down soon? I'm really not worried because the stock is being hyped even by Cramer and high expectations - which have little chance of failing to come true - are being put upon the stock to its upcoming June 9th WWDC event where new iPhones are supposed to be announced and/or put out for sale. Amonsgt these announcements will probably be the iPhone going unlocked worldwide for a premium and many many announcements of new countries where it'll be sold, supporting the rally. So at least until June I'm not really worried. Actually not even after June for I expect Apple's announcements to be supercalifragilisticexpialidoce with 10.000 news applications for the iPhone - that will most likely be available for the Mac eventually - and a new type of product that will be a mix of MacBook and iPhone probably taking the form of oversized iPhone and still be eligible to fit in one's pocket. So what is happening to AAPL in you system? It certainly did NOT keep itself into a trading range, it's now 180. Did Amazon?! Although every post has an email clicker, when I click on it there's no email address so I guess this is my only means of talking to you. Quite adequate though, if I receive a reply from you... Thank you so much for all the useful knowledge you offer the world!
All our Trade Triangles are a go for Apple since $180.00.
wt is this trading system does it help...... how to trade in intrady? how we can read when market is coming in beariesh mode?
Our program is not really for day traders.
My apologies. I guess Market Club don't expect a 15% drop in a stock either otherwise they wouldn't give out a signal prior. I think we've all been hit at one time or another with abnormal price movements.
I meant to say "poo-poo a legitimate criticism OF MarketClub" not "or MarketClub."
OK first I want to clarify a few things:
To "Trading System Development" guy: No I did not get "wiped" out. Please don't poo-poo a legitimate criticism or MarketClub by making the assumption that I bet my life savings on two stocks, OK??! However when I get a 100 point score (strong buy signal) on a stock and I buy it, I do not expect the stock to plummet 15% by the next day.
To Adam: I actually didnt lose any at all money on NEU, I just lost all my profits on it. I bought in at March at around $69. Oddly enough as of today 4/25/08) on NEU the weekly trade signal on the studies page is a sell as of 4/24/08, but on the "Chart Analyize" page today the bottom two triangles are still pointing up. Why is that?
In reviewing your trading triangle videos I notice that these signals look to be rather misleading. I just watched your March gold video where you had multiple sell day X, buy day X+1 trades. Were you to actually follow this advice you would continuously lose. Why? Let's say day X was a down day, losing 3 dollars on gold, ending at 800. The next day was an up day, rising 5 dollars ending at 805. Trading daily bars, one would be force to SELL End of Day (EOD) on day X at 800, and then BUY on EOD of day X+1 at 805 for an instant loss of $5.00. Trading EOD on a daily chart is how it's done. However, the numbers you portray on your charts are assuming you sell on day X at 803 at the open. And then buy on day X+1 at 800, again at the open. You're trading at the open with knowledge gained after the fact. How is this possible? It appears as if you're buying on the open of day X with the knowledge that it will drop $3.00. And then buying on day X+1 with the, impossible to know, knowledge that gold will rise $5.00. Either explain your ability to sell and buy on daily bars with this preknowledge, or stop misleading the public with these erroneous results.
Thank you for your posting.
I recommend that you watch more of our videos to understand how the "Trade Triangles" work. MarketClub has thousands on members around the world who consistenly do well following the "Trade Triangle" approach. I strongly disagree with you that we are misleading anyone. Our program is fully disclosed. I do not believe you are a member of MarketClub. You can take a 30 Day RISK FREE trial and kick the tires and see for yourself how we do it. What could be fairer than that.
Hi Adam, I would just like to say that this is a great website for learning how to trade the markets properly! I would like to give credit where it is due - the triangles got me into CELESTICA (CLS) on the TSE in mid-February. About a month later I got stopped out with a small loss but I decided to keep an eye on it since the monthly triangle was still positive. Just two weeks later (March 24th) the weekly turned up again and I bought back in. Today (April 24th) Celestica announced "good news" and the stock was up 34%! Thanks for providing the "average guy" with a simple set of tools which are so effective. Vince
You nailed it. This is exactly how you are supposed to use MarketClub's, Trade Triangles. Small losses and big profits, plus persistence always wins out in the long run. Keep up the good trading.
Ed OB, Market Club do not say that there signals are 100% correct, nor does any 'sane' person who trades the markets. However, it is a function of your own money management that determines your success more so than any trading method or system. If two trades has wiped you out financially, how can it be Market Club's fault - what were you risking per trade?
Ed, As you wisely mentioned diver
sification and money management a crucial to successful trading. Thanks for your comments.
TNH and NEU I was long these two stocks and followed the monthly trend and used the weekly buy/sell signals religiously and got hammered. Check out the charts...why did the trade triangle technology do so poorly on these two?
I agree with you on the TNH stock. That is most unusual for a stock to reverse that much in a two month period. I did notice one thing and that TNH was a pretty low volume stock which might account for some game playing by the specialists. On NEU the triangles were right on the money. Had you taken the original monthly buy signal at 58.76 on February 4th of '08 and exited on the weekly signal at 74.21 it would have produces a profit of around 15 dollars a share which is a bout a 25 % return in a couple of months.
Hi Adam, You were right on the money with those two calls! I learned a lot. Thank you for providing such a high level of education. steve
Thanks for your positive feedback.
im new in this market where do i can get basic knowledge of tardeing and finace ....... can ur perovide some basic knowledge
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