Thursday evening

Thursday Afternoon - Broken AAPL

You are effin up my company!!!

Apple disappointed and the whackage has been brutal.  The S&P 500 is ignoring that carnage and setting new highs.  Talking heads in Davos have painted a less ugly picture for the Euro Zone and 1550 is a reasonable target now.

Thursday Morning after AAPL Bomb

Gator's Chart of the Day: QCOM

Okay so Apple bombed after market.  Was it because iPhone sales were well below expectations?  Well, no.  They sold a record 47.8 million of them and analysts predicted 47-50 million.  That meant their smartphone sales were up 29% from a year earlier.  QCOM chips are in every iPhone and I think it will present an opportunity as it is selling off a bit on Apple's results.  Samsung smartphones also use QCOM chips and those phones have been taking market share so QCOM should be doing just fine.

The Trade 
After market QCOM was trading just below 64 (green arrow) and that puts it just above the 20 day simple moving average which has been support since it gapped up to start 2013.  I would like to start a position as close to the 20 day as possible or maybe even on a bounce from the 50 day.  If the stock falls below there then the market is likely pulling back and a long position would just be wrong.  Assuming an entry can be found I would put the stop a little under the bounce point, look for a move to the upper Bollinger band and add as it clears the September high of 65.45. The next target would be the March high of 68.87.

Note: Earnings are scheduled for January 30 after market close.