Tuesday, April 22, 2008


AAPL got hammered today before their Q2 earnings release tomorrow afternoon. A theory I read on the selling says that while their Q2 earnings are expected to be strong, "Apple famously gives very conservative financial forecasts that it usually ends up easily beating. Still, some have a sneaking fear that, this time, low-balling executives will turn out to mean what they say."
Which I suppose means that Apple will show strength in their Q2 numbers but nothing stellar? It seems like pretty drastic selling (compared to Google's price action prior to earnings) which I'm sure scares a lot of people who were looking to go long. It will be curious to see what happens tomorrow (my guess is sideways chop), but I can't wait to see what happens after hours tomorrow.
So, if this chart does reflect a cup w. handle, it can be measured in different ways, one of which would show us just now going into the handle stage of the pattern. It makes my head spin.
So, we could see the whole cup w. handle pattern failing.

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