Apple is teed up for next week

Yesterday, I went to the Apple(NASDAQ:AAPL) store to ask them about the new iPhone 5S and to see if they had any in stock. I was told that they no longer sold the iPhone in the store and that I had to order one online. I was somewhat taken aback by this, but then it all sort of made sense to me when I thought about it.

I think the demand for the iPhone 5S, the gold edition in particular, has been off the charts and I think we're going to see a tremendous number of iPhone sales in the fourth quarter. Having checked out the Apple store, I decided to go to Best Buy to see what they had in the iPhone 5S market. It was pretty much the same story, you have to order online and you can pick it up at the store. This makes a lot of sense because Apple can then deliver what people want based on their online orders. This allows Apple to ramp up its production to meet demand.

Technical Analysis of Apple , using Trade Triangles, Fibonacci and classic technical analysis.

CHART LEGEND
1) Double Bottom
2) Pivot Point
3) Target Zone from Pivot Point
4-5) Measurement for Fibonacci Retracement
6) 50% Fibonacci Retracement
7) Line In The Sand - $497
8) Trade Triangles

The market action recently for Apple (NASDAQ:AAPL) has been choppy, which I believe is a good thing, as Apple sets itself up to move higher. I have been looking for Apple to move to the $550-$560 area or higher. That target zone is still in effect. The battle lines are drawn and I know that if the market does not rally strongly today, the new trigger point for Apple next week is going to be the $497 level. Once over that level, this market could take off and move very quickly to higher levels.

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Doubtless, you may have heard some of the problems that have been circulating in the press about the new iPad retina displays, and that they're going to be delayed coming to market. This is likely just a technical glitch that could have been caused by one supplier. I think that demand for the smaller 7in retina iPad is going to be very big both here and overseas.

Lastly, like thousands of loyal Apple fans, I still don't have an iPhone 5S Gold, but I want one. I guess I'm going to have to break down and order online and wait for it to be delivered to the local Apple store. One thing I am really enjoying a great deal is the new iOS7 operating system. Apple has done a masterful job of changing its old and aging operating system into one that really is cutting-edge. The fact that it can run on the new 64-bit A7 chip and the old 32-bit chip is a testimonial to Apple's technical expertise.

As you can see on the chart, I have drawn a line in the sand for Apple and when this line is crossed it will turn our intermediate weekly Trade Triangle green, indicating a resumption of Apple's strong and longer-term uptrend.

If you have any comments or thoughts on Apple, I would love to hear from you!

Have a great weekend everyone and let's watch Apple closely next week, it could be a good one.

All the best,

Adam Hewison
President, INO.com
Co-Creator, MarketClub

16 thoughts on “Apple is teed up for next week

    1. Robert,

      Good to hear from you. That's interesting news you send us from Malaysia in regards to the Apple iPhone. Maybe this is a new strategy for Apple and that's to build on demand as opposed to having a large inventory on hand that could get out of hand. Let us know when you get your iPhone's 5S. Thanks.

      All the best,

      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

  1. A bird in the hand is better than two in the bush.
    I think you'll see that having to jump through the order online hoop, rather than pulling out your wallet, might not perform as well as you think. Not to mention, when someone is ready to buy something, if they can't have it right away, they sometimes choose a different color or something that is in stock. But online, if there is any mention of extra delay for any special color, they may choose to wait. And while they are waiting, they can be deciding on that other phone they've been debating with themselves about buying.

    1. Evan,

      You make a very valid point. It will be interesting to see how many actual iPhones Apple sells in Q4.

      Thanks for your input - much appreciated.

      Adam Hewison
      President, INO.com
      Co-founder MarketClub.com

  2. Adam

    Your article reminds me P.Lynch old great methods. My girlfriend got her gold Iphone5 3 days ago. A piece of beauty.

    Thanks for the breakdown of the AAPL chart. What do you think about short term HLF after the new news?

    Thanks for your service. It is very valuable for me.

    Giora Zeevy

    1. Giora,

      I think your girlfriend got my gold iPhone, ha ha.

      If you looking at HLF you are of course looking at the battle between Carl Ichan and Bill Ackman. I just don't understand Ackman's trading style. I guess money management is not his strongest suit as he lost a pile of money in JCPenney, and it looks like he is losing a pile of money and Herbalife.

      We turned bullish on HLF in May and it's been a good ride so far in this stock. At the moment we have a reading of +55 indicating a sideways market. At the moment it looks a little toppy, but I'm going to wait until our Trade Triangles give us the final clues that we need to make a calculated trade in this stock.

      Cheers,

      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

    1. Wags,

      Thanks for your input. Elliott wave analysis is a fascinating way to look at the market. here is one of the big challenges with Elliott wave and that is the difficulty of the subaccounts and the minor counts with in counts. I have found a lot of people who use Elliott sometimes get frustrated with that very challenge. Generally speaking when will you say that your count would be incorrect, is it when we go over the trigger point at 497?

      Really appreciate your input into this blog posting.

      Cheers,

      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

  3. Sometimes when evidence is overwhelming you have to go against your bias. I am in the market for a new phone. I have had by Droid for about 3 years. It has been a great phone but the battery life sucks as does the iphone. So I will be buying the Droid MAX for the 3 to 4 day battery lifespan feature. That is my taste and my preference. Just because I don't prefer a iphone doesn't mean anything when it come to investing. Follow the technology! I like the Apple buy signal's and there are plenty of them and it seems like a pretty low risk entry so thanks Adam for pointing it out. I will keep a eye on the line in the sand.

    1. JP,

      It looks like it should be a pretty interesting week coming up for Apple. Certainly the line in the sand is clearly drawn and that is our trigger point to go all in with Apple.

      Appreciate your input.

      Cheers,

      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

      1. Two concerns I have about next week.
        1. The enormous amount of call options outstanding which might produce a short term long squeeze .

        2. Failure to announce a new product release announcement for the iPads for the week of 10/15.

        1. Paul,

          Good point. What may trump both of those events is some sort of resolution to the government shut down and national debt. Either way it is going to be an interesting week.

          Thanks for your viewpoint- much appreciated.

          Adam Hewison
          President, INO.com
          Co-founder MarketClub.com

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