S&P 500, and Nasdaq futures, managed to close higher with Apple (AAPL) +2.67%, Facebook (FB) +7.10%, and Qualcomm (QCOM) +5.07% reporting after the closing bell. All three are trading higher this morning, while ServiceNow (NOW) moved lower (-6.35%) after reporting earnings on Wednesday evening.
Apple and Facebook reported blowout earnings, while Apple announced it would double down on stock repurchases.
Futures are trading above the major gamma resistance level of 4200.
Click on charts to enlarge
Apple Intraday Chart
Apple is higher this morning, but trading below its Wednesday evening peak of 139.50 achieved shortly after reporting “blow-out” earnings.
Apple’s iPhone 12 sales registered strong demand for the quarter, due in part to continued remote work and schooling necessitated by the COVID-19 pandemic..
In the company’s fiscal Q2 report, Apple hailed record sales and earnings revenue of $89.6 billion, up 54 percent year over year. The iPhone took in just under $48 billion, jumping up by 66 percent compared to same quarter sales and earnings last year.
Sales of Mac and iPad hardware surged 70 and 78 percent respectively. Click the chart to enlarge.
We are considering trades on Apple, Facebook, and Qualcomm today, looking for swings into next week.
Relative volume (RVOL) needs to be above average (2.0 or better), with price action formly above VWAP early in the morning session. Watch for an opening range breakout after 10:00 AM and for a move away from a bullish VWAP.
Extra points will be awarded if the stocks do not fade and the technology sector is strong. Indices should be strong as well.
Investors and traders spent the latter part of Wednesday’s session mulling over the latest comments from Fed chief Jerome Powell’s. In addition, overnight results from Microsoft stock dampened market action in the stock, while Alphabet (GOOGL) jumped to a new high. Tesla(TSLA) stock fell to support, testing its 50-day after Tuesday’s earnings report.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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