Apple has followed Google's lead and had a powerful rally into earnings (that will post tomorrow after the close of trading). Since bottoming near 119 a week ago, Apple has snapped back to close today at 132. What to do if you own Apple? Can and should you add more stock tomorrow before earnings? Could Apple possibly have a blow-out earnings result like Google and rocket higher?
First - you can never predict these blow-off events. Truly - Google's trading day on Friday was the biggest one day market cap gain for a stock in history - a one off for sure. Yes, the second biggest market cap move in history belongs to Apple. However, Google has been in a trading rut for a long time and was due for a huge snap-back move to the upside. Apple has already had it's repricing moment and seems far less likely to see such a spike.
That said - if you own Apple - just hold your position. No need to do anything tomorrow. If you don't own shares, I say - don't chase. The stock is near all-time highs and I don't believe the risk reward ratio is in balance. There are rumors the watch will truly disappoint and be a drag on earnings. If that happens, you might get a re-test of recent lows and hence - a better price.
Short term rating = HOLD
Long term rating = BUY
First - you can never predict these blow-off events. Truly - Google's trading day on Friday was the biggest one day market cap gain for a stock in history - a one off for sure. Yes, the second biggest market cap move in history belongs to Apple. However, Google has been in a trading rut for a long time and was due for a huge snap-back move to the upside. Apple has already had it's repricing moment and seems far less likely to see such a spike.
That said - if you own Apple - just hold your position. No need to do anything tomorrow. If you don't own shares, I say - don't chase. The stock is near all-time highs and I don't believe the risk reward ratio is in balance. There are rumors the watch will truly disappoint and be a drag on earnings. If that happens, you might get a re-test of recent lows and hence - a better price.
Short term rating = HOLD
Long term rating = BUY