AAPL - starting to look ugly again

Apple had a rough day, even though the main market was only a mere 0.5% lower in general. Since earnings last Tuesday AH, AAPL is down over $35 from the peak - which interestingly was none other than a black-doom candle, very much warning of a failed gap/rally.


AAPL, daily

Bears need to see a break below the recent 580 support level - which has already failed of course. So..it would seem unlikely that 580 will hold. In which case first target for AAPL would be the previous low of 555. A break of 555, would arguably open the door to a big move to $500.*

*such a move/outlook in the near term for AAPL would be suggestive of a break in the SP <1340..and probably sub'1300.

So..keep an eye on AAPL, as many often note ...AAPL is the Market these days.

BKS - 10am intra-day special update

Some crazy price action in BKS. Due to the MSFT deal about the Nook, BKS is seeing severe bear covering in pre-market..and now they are selling it off HARD.

BKS, daily

*some interesting options hyper-ramp in the May Calls at the open (much lower gains a mere 30mins later)

Very low volume, so it looks like very few will be part of that
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The ultimate black doom candle?

Todays candle is a pretty dire one for those who are still looking to hold beyond this today. Where is the follow through?

AMZN - still failing, contrary to mainstream opinion

Amazon's earnings on Thursday were extraordinarily bad, yet the stock soared over 15% during Friday trading. The hosts across the various financial clown channels were endlessly touting 'blowout numbers', yeah, those numbers sure did blow.

Over the last few years we've sure seen some truly crazy times where the market - or an individual stock, has soared on baseless rumours, mass delusion, or nothing less than mass hysteria (such as those social media IPOs). Yet here we are again, one of the worlds biggest online retailers posted lousy numbers, and the stock soared.


AMZN, weekly

AMZN, daily

In terms of stock price, AMZN is now in a very strange place. For some time to come, 'technicals' are arguably pointless to consider. Clearly the giant bear flag on the weekly cycle has been nullified, and the daily chart now just looks plain bizarre. Doubtless a lot of the rise on Friday would have been short covering 'at any price'.


Amazon...losses to come?

First, see this excellent posting on Zerohedge.com- Amazon Surges on Collapsing Margins...
The comments are also especially worth reading!

So the truth is that AMZN's operating margins actually declined even further to just 1.5%, compared to 3.2%, and this is a 'blowout number'? 
see: stats (although Q1 data not yet listed): http://finance.yahoo.com/q/ks?s=AMZN+Key+Statistics

With a weaker economy - which is already the case in both Japan and across the EU, AMZN is going to suffer. With weaker sales, and slightly higher input & operating costs, it won't take much for it to start posting huge losses. For the moment, anyone who recently shorted AMZN has just got nailed.

Given a few more quarters though, I'm still looking for AMZN to start posting losses.