January 27, 2014

Apple Earnings – Monday’s Charts – $AAPL, $TWTR, $FB

applelogoThe corrections are in full swing with Monday’s trade falling in line with expectations.  The markets attempted an early rally during Asian and European trade overnight and failed to ignite any real enthusiasm to the upside before turning lower and into session lows.  Finally, the “bargain hunters” showed up and made a stand to prop up the DJIA on the heels of strength in CAT and MRK.  The NDX and RUT though could not produce much positive momentum and didn’t see “green” on Monday.  Expect additional downside to begin on Tuesday as Apple’s earnings are filtered through the broader indexes.  Apple’s iPhone sales disappointed the “street” with the problem seemingly centering on revenue guidance.  Apple’s revenue guidance and forecast for second-quarter revenue was in the range of $42 to $44 billion versus the ‘street’s’ number being $46 billion.  As one analyst put it, “People were hoping for more, and Apple essentially guided flat year-over-year growth.” 


First quarter earnings were in line with expectations at $13.1 billion ($14.50 a share) on $57.6 billion in revenue versus expectations of $14.09 per share, on revenue of $57.47 billion.  With expectations running high for a continuation of “blow the doors” off earnings reports and on the heels of NFLX stellar performance post earnings traders were not pleased with the downward guidance and sold the stock down to $503 (8%) after hours on Monday.  This in turn drove the NDX future to a low of 3466 (3502 close) during early after hours trading.  Expectations would be for the correction to resume full speed on Tuesday with the NDX leading the way lower.  Check out today’s chart for AAPL’s amazing after hours trading.


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facebook2Next up on the earnings front is Facebook.  An early news story announced “Sell Facebook before earnings.”  Within the article the author made clear that buyers who purchased stock at the 2012 bottom are up 220% in a year and a half.  If you bought in July 2013 you’ve doubled your money.  All is well with FB shareholders with the stock hitting a new high last week at $59.  Then there was the reminder of the tech darling prior to FB – AAPL and how the stock tumbled from above $700 to below $400 in a matter of a few months.  The author then made his point in that he felt that there is a good chance the fourth quarter earnings report from FB on Wednesday could be a similar inflection point for the social-media stock.  The points made were all valid in my view and now that Apple has reported and guided lower for the 2nd quarter the reality of FB disappointing becomes stronger.  This in turn pulled down TWTR, LNKD, PCLN, and NFLX. 


With corrections underway the bias of news stories will revolve around the negative aspects versus the positive outlook going forward.  This is how it progresses and there shouldn’t be any surprises as to who says what.  Check out today’s charts on TWTR and FB for trade details.

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Join me Monday thru Friday from 9:30 AM to 10:30 AM EST as I continue to review trading equities using DTS.  The room is open to all and is a great place to review how the DTS birds are easy to use and will make consistent trading profits. 

The good news is that the current atmosphere remains prime for day trading.  And while the $264 billion trade remains elusive there are solid opportunities to trade profitably.  I expect there will be numerous opportunities from a growing list for both traders who approach the market from a bullish prospective as well as traders who approach the market from a bearish prospective.  

Remember the key is being able to reduce and separate the “noise” from opportunity.  This takes knowing and executing a well-defined strategy and allows you to see opportunities amongst the “chaos” and by trusting the mechanics of your strategy, be able to take advantage of them. 

The trading opportunities should remain abundant within equities, futures, ETFs, options, treasuries, and precious metals.  Opportunity continues to knock on our doors.  While it doesn’t come without risk, risk can be defined and more manageable.  Volatility and broad moves are exactly what a day trader desires and being able to respond without questioning is a luxury many are unaware of. 

Using the Hawk Micro Scalper, Falcon Swing Trader, and the Eagle Trend Trader within the various markets can produce strong results.  The combination of any of the “birds”, the Hawk, Falcon, or Eagle platforms with Trade Manager provides a solid, more stress free way to building profitable trades. 

DTSBirdsIndicator Warehouse


Indicator Warehouse has in my opinion the best platforms available covering a wide range of traders from novice to expert.


The Diversified Trading System from Indicator Warehouse offers cost effective products that allow a trader to enter into the “chaos” and trade more effectively.  


Trade Manager from Indicator Warehouse automatically calculates the correct amount of contracts or shares based on your account size or market volatility.  Automated stop-loss management and position sizing eliminates most of the problems most individual traders have.  Day trading and position trading both require (actually demand) good risk management.  Trade Manager does the job across the board and is an essential trading tool that ensures that you take the maximum profit from all your trades. 


Profit Finder – System Back Tester.   When implemented it allows the user to:

  • Immediately know the impact of parameter changes. 
  • Automatically reads all of your DTS entries and exits
  • Calculates the profit/loss of each trade
  • Performs a wide number of essential intelligence boosting calculations instantly
  • Provides solid details about the effectiveness of your trading strategy/ methodology/ indicators



My point on money rotation and sector rotation is similar to that on parabolic moves that they happen with frequency within many time frames.  As traders these types of moves can be a bonus for day trading or position trading so again don’t get caught up in the “what’s the catch.”    Realizing a rotation is occurring within a stock you trade or a sector is a great source of stocks to plug into the Diversified Trading System.  Allowing DTS to cleanly and beautifully capture the moves though any or all three DTS trading platforms.  Our goal remains to assist traders to make greater profits during all types of markets.  Sector and money rotation is another tool.


The Diversified Trading System used together with Trade Manager should continue to produce numerous trading signals in the DJIA, YM (mini), S&P 500, ES (mini), RUT, TF (Russell 2000 mini), AAPL, AMZN, GOOG, NFLX, and LNKD, GS, and Tesla Motors (TSLA).    In the near future I will be adding options strategies to the trading list. 


Here is a list of the markets where I have found that DTS (all three birds) are producing numerous signals.  Continue to bear in mind that there are days when trading opportunities are not as plentiful.  These are days when not trading is likely more profitable than attempting to “force” a trade”:


  • DJIA future (e-mini available) – highly recommended for experienced traders
  • S&P-500 future (e-mini available) – highly recommended large intraday moves. The SPY options are a valuable alternative to the future.
  • Russell 2000 future (e-mini available) – highly recommended can lead in either direction.
  • NASDAQ 100 future (e-mini available) very highly recommended and dominated by AAPL, AMZN, NFLX, GOOG, and TSLA – will likely continue to have higher percentage moves as the next larger degree decline begins in the NASDAQ first.
  • GS (Goldman Sachs) – good two way volume – usually has $3+ intraday range – Options available
  • AAPL (Apple Computer) – highly recommended – Options trading as well
  • GOOG (Google) – highly recommended – larger accounts needed – options traded
  • LNKD (LinkedIn) – solid intraday range and has picked up recently Options traded
  • NFLX (Netflix) – solid intraday range – volatility has deflated on the rise back to $300 – Options traded and very liquid
  • TSLA (Tesla Motors) – highly recommended  – patience is required if you trade the options – trading the stock remains solid
  • TWTR (Twitter) – both stock and options strategies available.
  • 30-yr Treasury Bond future – highly recommended
  • 10-yr Treasury Note future – solid two way trade
  • TLT (Treasury Bond Long ETF) – very active – options as well
  • TBT (Treasury Bond Short ETF) – very active (moves inversely to TLT) – options as well
  • Gold (futures and ETF – GLD) very active – not suitable for all traders
  • Silver (futures and ETF – SLV) – very active – not suitable for all traders
  • GDX (Gold Miners ETF) – lower priced – suitable for all traders
  • ABX (Barrick Gold) – Large rally potential – capable of sizeable intraday moves.
  • NEM (Newmont Mining) superb volatility produces opportunity laden intraday moves.
  • EURO FX (futures, mini and micro contracts available) very active suitable for all account sizes – Highly recommended
  • Natural Gas (futures) – can be active and volatile
  • VIX Index (futures) – not suitable for all traders, more experienced traders should find a growing two-way trade.