AAPL Stock Blows out Earnings as Stocks Zoom Higher in Increased Trade

by | Apr 20, 2011

Running out of the gate stocks zoomed higher as volume swelled after the market had pulled back from the reaction move off the Japan Crisis low. The action near the most recent highs called into question the whether or not the market would be able to support higher prices. IBD even put their market outlook as “uptrend under pressure.” A few leaders had held up, but it was the big stocks like AAPL and GOOG stock concerned many traders. Given the recent earnings report from AAPL stock it is clear this uptrend has legs. We will continue to pile into leaders here and ride the next wave higher.
There were plenty of positive earnings releases yesterday like VMW stock, but today we had stellar reports. AAPL stock was an obvious winner, but QCOM stock posted great earnings. Mobile smart phones continue to be a hot item for QCOM and its earnings report/subsequent action proves there is demand for the stock. Another superior earnings report was FFIV stock. It wasn’t so much its earnings, but its guidance was spectacular. Cloud computing continues to be a hot sector for technology revolutionizing the way enterprise handle data. The cloud is still in its early stages, just be aware of the leaders and use price as your guide.
Today’s move certainly relieved any oversold condition existed from the prior sell-off. Given the action in the market leaders any overbought condition that gets signal will probably only get worse. Meaning, overbought conditions will likely become MORE overbought. Pay little attention to these types of indicators and focus on the market leaders here.
The S&P 500 would have had a better day if it weren’t for Banks. Financial stocks did very little to keep up with the market as it was Banks closing down by 1.05%. Leading the way was Technology followed by Oil and Gas as crude oil finished up more than 3 dollars. The poor, who get squeezed by inflation continue to be hit by high oil prices, but the rise in oil prices have certainly helped out oil and gas names.
Stick with the leaders and leave the laggards for the birds.