Market Opinion - Trading Week #3

Market Opinion for the Trading Week 28 Jan to 1 Feb 2013

Have fun trading : interesting, amusing or entertaining accounts on trading !~

Recap on last week

One of the biggest uproar last week was AAPL earnings, on Wed it close around 515 and open with HUGE GAP, 458 almost a 10% drop. OUCH 

Check this brief notes on how AAPL actually perform. They are a good company and products are lovely. I used to be an iphone user and their macbook air is in my wishlist =) its so pretty.

 In its Q1 2013 earnings report, Apple posted record quarterly revenue of $54.5 billion and a record net profit for the quarter of $13.1 billion on $13.81 per diluted share. Based on an independent consensus from 67 different analysts, Wall Street had expected $58.84 billion in revenue on $15.11 earnings per diluted share.

Regarding unit estimates, Wall Street’s consensus expected Apple to have sold roughly 50 million iPhones and 23 million iPads; in the final earnings report, however, Apple reported selling only 47.8 million iPhones and 22.9 million iPads.

“We’re pleased to have generated over $23 billion in cash flow from operations during the quarter,” Peter Oppenheimer, Apple’s CFO, said. “We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our ecosystem and generated Apple’s highest quarterly revenue ever.”

How the hell the stock got beaten so badly , just because the analyst have higher expectation. From my personal opinion, I m happy =) its a opportunity to pick up some apples just wait for it to find the next support. People probably got shocked on the gap and reacted and market maker or big boys might want to leverage on this opportunity to create a short term fear, causing people to panic sell (imagine you're holding it and it drop 10% in 1 day) SELLLLLLLLLL thereafter after helping the market maker or big boys to make the counter even cheaper to buy to make a profit.

Now back to the market, well it was up Up UP week. Bingo for me !  It was moving with momentum until it reached the 150 mark big whole number and break above it. I thought it would take sometime for it to break above. 

Accuracy : 2/2 100% (still 100%, wahhahaha let's see if i can hit 100% for 5 consecutive weeks)

Psychology
Check out the weekly candle stick pattern. What's your feeling of the candle ? Not much sign of bearishness yet. People can really get greedy. Plus it just break above the 150 mark. It's probably a V shape for next week. Bulls taking a breather by taking off some profit making it like a test of support on 150 mark before the bull continue to charge again. I m conservative bullish for next week.

Technical
Similar to previous post except that it break the high again. Reaching the channel resistance. I was doubtful in the feeling of candle but the technical aspect gave me a boost in confidence.

What's ahead for next week ?
Economic events
Yucks almost some important data releasing every single day. Its confusing when data are release and we are at the in between of either a support/resistance line. Probably volatile

Chinese new year coming in close. People are still on buying spree and probably lots of last minute shoppers, I guess it's still good for the overall economic till end of CNY. I wonder if for the past 20 years, 2 week before and 1 week after chinese new year, is there a pattern in the market ?

Opinion of the Market next week : sideway with little up side.