Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Thursday, the 24th of October.
Earlier this week, Apple (NASDAQ:AAPL) unveiled its new lineup of iPads and Macs that are going to push it into the fourth quarter. One key in the presentation that most observers might have missed while focusing on the products, was the fact that Apple intends to include and provide free software like Pages, Numbers, Keynote, iPhoto, iMovie, and GarageBand. These software programs are first class and represent some of the company's crown jewels. It's Apple's new strategy to bring more and more new users into Apple's ecosystem. Once in, it is hard to get out and Apple has you for life.
This strategy reminds me of King Gillette, of Gillette shaving and razors. King Gillette's strategy was simple, give away the razor and I will sell you the high-profit razor blades. In Apple's case, the software is the razor, the iPad, iPhone, the Mac and all of the other Apple hardware pieces are the razor blades. Not a bad strategy for Apple in the tablet wars.
Apple closed out last week at $508.60 and last month at $476.53. Apple is up almost 10% for the month of October and there is still one more week left to trade. I still believe Apple could be headed higher.
Netflix Grinds On
It has been quite a week for Netflix (NASDAQ:NLFX) as it reached a record high price of $389.16 on Tuesday, before heavy profit-taking moved in and pushed prices back down to reality. Last Friday, Netflix closed out at $333.18 and last month it closed at $309.23. I don't believe that the final chapter for this stock has been written. I expect to see further consolidation before it resumes its upward trend.
Amazon Bides Its Time
Amazon (NASDAQ:AMZN) is set to report earnings after the close today. It closed out last month at $312.92 and continues to grind upward on its relentless pursuit to e-commerce domination. All of our indicators are positive on this stock and I expect Amazon to meet or exceed earnings expectations.
Has Tesla Lost Its Spark?
Recently I had some questions from members on the stock price of Tesla (NASDAQ:TSLA). Looking at the stock, one can quickly see why. Tesla closed out the month of September at $193.31 and is presently trading around the $160 to $170 level. This stock closed out last week at $183.35. The major trend for Tesla remains positive while it retrenches and regroups after its dramatic run-up. I'll be looking at this stock today with the Trade Triangle technology.
Is Crude Oil Entering A Bear Market?
The price of crude oil continues to slip (good news for the economy and every motorist in America) and is now trading well below the $100 a barrel level. A classic Fibonacci retracement for this commodity would take it back to the $96 a barrel level. Both the short and intermediate term Trade Triangle strategies have worked well on this market and continue to advocate a short position. I will be covering crude oil in today's report.
The World Prepares For America's First Female Fed Chairman
It's a secret no longer, the world knows that Janet Yellen will be taking over the Fed chairmanship from Ben Bernanke on January 14th. How is Miss Yellen going to differ from "Helicopter Ben" and the insane QE strategy that has done very little for the country except move stock prices higher? I continue to be negative on the dollar based on the Trade Triangle technology.
I always appreciate your comments and feedback, so please feel free to leave them on this blog, along with any questions you might have for us.
Have a great trading day,
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.