Daily Archives: January 20, 2013

Here Comes Earnings Season…

January 20, 2013 (8:00 pm)

Now that January options expiration has passed, will the shares be free to run? There’s likely to be volatility. It would be picture perfect to see the shares close near the $530 level, fully forming and validating the falling wedge, before breaking out after their earnings report. But will reality follow those hopes?

As investors, one thing we all have to keep in mind is expectations. There’s clearly a discrepancy between expectations for Apple vs. expectations for its peers. Facebook is up 56% over the past three months, Amazon is hitting all-time highs right now and Google has recently neared its all-time highs. Expectations are clearly sky high for these tech companies.

Then there’s Apple, which is back to levels last seen in early February 2012 – almost a year ago. The benefit to extremely low expectations is that they become so much easier to exceed. An interesting possible trade here is going long Apple and short Google, Amazon or Facebook into earnings. So where do you think Apple trades heading into earnings on Wednesday afternoon?