AAPL, Earnings, and what's next...

Well Apple returned better than expected earnings yesterday which is a great thing.  One would expect investors to like that and would expect the stock to gap up substantially.  However Steve Jobs decided to tell everyone next quarter won't be so good (which he always says).  This created mild panic.  In after hours trading yesterday the stock traded way down into the 155 range.  It really made us curious what would happen this morning.  Interestingly enough, stock moved up drastically, then moved down drastically, and 15 minutes later it was like nothing happened.  Everything traded as though there was no big news.  It fits the pattern of the last several days, everyone's happy.  No one made money, no one lost money.  Earnings this time were SHOCKINGLY a NON event.  Who knew?

So what's next?  Well once the fear's over AAPL continued in it's trend - that's what's next.  AAPL traded down to the 20 day MA today, bounced, and never looked back.   Nice close.  We're in a good profit on our 160 calls.  Tomorrow I actually expect a better day of trading.  There's a good chance we'll also close our position and take profit, maybe looking at a 170 Call for June.  

I mentioned SNDK a few weeks ago.  If you can look at a chart pull up the B. Bands, a 5 & 10day  Exponential Moving Average, and also put a 100 day Simple Moving Average.  SNDK is in an uptrend based on the moving averages and B Bands.  However it's stopped and been stuck trying to push through the 100 day average.  Effectively what's happening is it's trading into a wedge pattern.  This is an ascending wedge - MOST of the time this breaks to the upside.   To encourage a bullish position on this over the last few weeks SNDK has formed a bullish head and shoulders pattern.  Watch for SNDK to continue trading in the wedge patter and eventually break out.  It COULD break out tomorrow, it COULD break out next week.  Who knows, point is, when it breaks out watch for it to move.  In the past SNDK has been a good stock to trade with very predictable patterns.  Options are cheap too.  It's a great stock to own and write calls against, and it's a very cheap credit spread stock.  Lots of good strategies for this one.  Keep watching.  

One more stock worth mentioning.  I think I mentioned Dry Ships.  DRYS.  We missed a bullish entry on this today.  When it push down through the 5 day MA and then bounced and the bulls took back over that was our entry.  Tomorrow Josh and I may take a bullish entry if the conditions are right.  Target 1 is going to be about $ 88 which it should reach very quickly.  Target 2 is in the $99 range and the next target would be 120.  Keep a close eye on this one as well.  I think 85 calls while DRYS is at 82 is a real good deal.  

Other stocks to watch in the near future - VMW, FSLR, CMP, RIMM, SHLD, WYNN, XOM

J-