The last few days of trading in October will be fun. On Wednesday, we will hear from the FOMC regarding interest rates as well as AAPL Earnings. Odds favor another rate cut from the central bank and AAPL is expected to earn $2.84 a share according to Zach’s Investment Research. We fully expect the market to move on both events. In the meantime, we do have futures indicating a higher open for Monday’s trade. QQQs had a solid day on Friday breaking into all-time high territory. DIA and SPY are not too far behind while IWM is too far off in the distance to be heard. Whatever your persuasion on the market, at least from QQQ and SPY all indications are pointing to the market moving higher. All we can do now is react to what is in front of us and control our risk as we proceed this week.
AAPL has been in a solid uptrend since the beginning of summer. There was a little hiccup in July, but for the most part the technology giant has been a steady mover. While not a tremendous winner the stock is so large it impacts the NASDAQ in a big way. GOOGL another tech giant is set to report earnings after the bell on Monday where the company is expected to earn $12.69 a share. While GOOGL has not seen the uptrend like AAPL has the stock is poised to breakout to the upside. Will it? We will certainly find out, but a game plan of entry, position size, cut loss, and profit exits will certainly maximize your profit potential in the name. Most traders are only concerned with just getting into the stock. They have no plan whatsoever to control their open risk leaving them exposed to serious downside risk. Have a plan and maximize your profit potential.
AMZN is another interesting stock. The company reported what most found to be disappointing right after release. Even into the early morning part of trading did most think the stock was headed lower due to poor earnings. Buyers stepped up in a big way supporting the stock. It would not surprise us one bit to see this thing continue to move higher if conditions warrant. A lot of support usually means big institutions are willing to defend the stock at key support levels.
We hope you had a great weekend. This will certainly be a busy week in the stock market for us without a doubt. Earnings continue to hit the market creating opportunities for gains. While cutting your losses is the golden rule missing out on big gains is not too far behind. You must be in the game to win. Best of luck to your trading this week and enjoy!
