For the first time in 16 years, Apple (AAPL) pre-released guidance on earnings – and it’s not good. In a letter to shareholders, CEO Tim Cook issued lower earnings guidance for the quarter. Revenue was anticipated to be ~$92 billion for the quarter, but new guidance brings this down to ~$84 billion. Nearly all of this is China. Given the company’s current financial landscape, I see a potential investment in Apple as a solid bet. However, once you factor in that eventually the trade war will end and the potential of improvement in the Chinese economy, then an investment in Apple means you would be in front of the potential ~$8 billion increase in revenue from China. This makes the stock a strong buy, in my opinion.
The reaction in the markets from the recent news was swift for Apple. Over the past few months, Apple stock had been moving lower and lower. However, on this specific move, the stock moved from ~$175.00 all the way down to ~143.00.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 181.17.
The projected upper bound is: 165.28.
The projected lower bound is: 133.65.
The projected closing price is: 149.46.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 40.6050. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 38.21. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 2 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -48. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 2.820 at 150.750. Volume was 1% below average (neutral) and Bollinger Bands were 19% wider than normal.
Open High Low Close Volume___
149.560 151.820 148.520 150.750 41,025,312
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 152.12 179.29 192.68
Volatility: 82 57 39
Volume: 50,892,580 46,821,392 33,602,020
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
APPLE INC is currently 21.8% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 60 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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