April 28, 2021

STOCKS – AAPL, AMZN

MACRO – SPY

Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL

• RTM MIDDAY – THE RALLY, MAY BE FINISHED
• Live Webcast Tomorrow At 1PM
• RTM Morning Note – Yields Are Rising, Watching Apple And Facebook
• Post-FOMC Thoughts
• RTM Midday- Maybe The Worst Of Both Worlds?
• RTM MIDDAY- RATES ARE READY TO HAVE A MASSIVE MOVE
• Facebook Earnings Preview- Need To Know Guide
• RTM MORNING NOTE- AMD MAY JUMP FOLLOWING RESULTS
• RTM MIDDAY – A LOT OF BORING

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL

Well, that was a fun day, a lot of volatility and not a whole lot changing. It seems like we are very close to the S&P 500 breaking the rising wedge pattern; it could be tomorrow could be Tuesday. Monday is the first day of the month, so that has to be an up day, right?! First-off, everyone knows we rally on Monday, and I’m sure there will be plenty of monthly inflows, like every up 1% first day of the month.

Based on this chart, we could rally to around 4,260 if we don’t break down first. Ideally, we would a sell-off tomorrow and then a rally on Monday to test the breakdown, but I’m speculating.

Amazon (AMZN)

Amazon reported better than expected revenue and earnings. Even AWS was a bit better, even though it missed the high-end of the estimate range. For now, the stock is trading higher; I’m just wondering for how long. According to the press release, Amazon is looking for Operating income in the second quarter in a range of $4.5 to $8 billion, at the midpoint that would $6.25 billion. According to my Refinitiv Data, it shows 2Q estimates of $6.9 billion. Unless I’m looking at something the wrong way, that seems like a pretty significant miss. Once investors figure that, I would be surprised if the stock didn’t sell-off.

I must have missed the part about the stock split? What happened to it? So it ran-up in into earnings on rumors of a stock split; as far I know, there has been no stock split. Do those gains, therefore, need to be nullified?

Apple (AAPL)

Apple certainly gave back all of its gains today to finish down, no surprise? It really traded poorly today, and it probably has further to fall. Look, the numbers were great, but this stock is expensive, and they give no guidance. Remember when Apple decided it wasn’t going to break iPhone sales? The shopping cart thing took some time to get over.  Do I believe in the company, yep? Do I think their future is bright? Yep. That doesn’t mean the stock can’t go down or consolidate some.

Anyway, I’m tired; I’m working off the second MRNA vaccine shot. It wasn’t nearly as bad I heard it would be. But I do feel a little less energetic than usual.

Mike