Apple's earnings beat expectations but stock dropped

Wall Street expected Apple's growth to continue slowing down
But Apple's earnings, revenue & future expectations all beat estimates
Apple dropped from 529.88 to 517.25 possibly due to profit taking
It's also possible for Apple to rebound tomorrow after being oversold as it still remains one of the most undervalued & profitable company
Look to buy Apple below 530 tomorrow, supports not found yet but it will most likely go up to reach for 530 again

Billionaire Carl Icahn bought more Apple stock

According to the letter Carl Icahn sent to Apple, he increased his investment in Apple by 22% to 4.7 million shares & asked for a $150 billion buyback

He also said that he wouldn't sell his stocks & take profits after that
Apple jumped from 524 to 530
We already issued signal to buy Apple @ 524 earlier

Buy S&P 500 @ 1680- won, Buy Apple @ 490- won, Buy Facebook @ 50.5- won

Buy S&P 500 around 1680 for 30 minutes expiration if it stays above
Result: won
S&P 500 expired @ 1683.98 at 10:30am EDT

Buy Apple around 490 for 30 minutes expiration if it stays above
Result: won
Apple expired @ 491.79 at 10:30am EDT

Buy Facebook around 50.5 (stronger support) or 51.0 for 30 minutes expiration if it stays above
Result: won
Facebook expired @ 51.15 at 10:30am EDT

Buy S&P 500 @ 1675- won, Buy Apple @ 485- won

Buy S&P 500 around 1675 for 30 minutes expiration if it stays above
Result: won
S&P 500 expired @ 1683.98 at 10:30am EDT

Buy Apple around 485 for 30 minutes expiration if it stays above
Result: won
Apple expired @ 491.79 at 10:30am EDT

Buy S&P 500 @ 1680, Buy Apple @ 490, Buy Facebook @ 50.5

Buy S&P 500 around 1680 for 30 minutes expiration if it stays above
Buy Apple around 490 for 30 minutes expiration if it stays above
Buy Facebook around 50.5 (stronger support) or 51.0 for 30 minutes expiration if it stays above

Buy S&P 500 @ 1675, Buy Apple @ 485

Buy S&P 500 around 1675 for 30 minutes expiration if it stays above
S&P 500 is rebounding & should at least reach 1680 temporarily
Buy Apple around 485 for 30 minutes expiration if it stays above
Apple is going up & should at least reach 490

Stocks to watch today

US government shutdown continues as Boehner said that there's no way the Republicans will pass a clean debt ceiling & Obama said that he refuses to negotiate over any changes to Obamacare

US stock futures plunged but is slowly trying to rebound now
Stocks will try to rebound but it will be difficult
S&P 500 can drop anytime because it's weak
Look to sell S&P 500

Apple is upgraded to "Buy" as iPhone sales might increase its gross margin more than expected
iPhone 5S was the top-selling mobile phone in September
SEC ended investigation into Apple's tax practices without taking any action
iPhone 5C is also being discounted
Look to buy Apple

BlackBerry is in talks with Google, Cisco & SAP to sell itself as a whole or pieces
BBRY is up to 8.0 from 7.69
Look to buy BlackBerry

Stocks to watch

3 of Microsoft's top investors are asking Bill Gates to step down as chairman
Investors' reaction are mixed & they aren't sure if it's a good idea
Nevertheless, it should become a concern

Icahn pushed for a $150 billion stock buyback from Apple but appeared to be unsuccessful as he said that he argued very hard for it & will continue to talk again in 3 weeks
But he also said that he's not going away until they hear a lot more from him

Buy Apple- won

Buy Apple around 476 for 30 minutes expiration
Result: won

Apple expired @ 478.75 at 10:30am EDT

Trading Signals to watch

Fed said the economy is weaker than they thought but they might taper in October if the economy is strong enough
More uncertainty as investors worry about the economy & tapering

Apple raised Q4 revenue expectations after selling 9 million iPhones over the weekend
Look to buy Apple around 490 if it stays above, for end of day expiration
It dropped below 490 yesterday so it wasn't safe to buy yet
However, it tried to build support @ 490 after 3pm EDT
It's still weak but it can become a strong support today

China will lift ban on Facebook
Look to buy FB around 47.0 or 48.0 (higher risk) if it stays above,  for end of day expiration

Netflix's “House of Cards” wins an Emmy award
Look to buy Netflix around 300 if it stays above, for end of day expiration
Netflix looks weak but managed to stay above 300 yesterday
Yesterday's drop from 320 to 300 could also provide more reasons to buy its stock at a lower price before it goes up again

Stocks to watch

The market should rebound today as it was oversold on Friday

Apple sold a record of 9 million iPhones, beating estimates of 5-8 million
Apple's stock shot up to 496 from 467 & might reach 500 today but it should be too high

Microsoft will release new Surface Tablets today
Microsoft's stock not much changed at 32.72 from 32.79

Citigroup's trading revenue dropped significantly
Citigroup's stock dropped to 49.99 from 51.21

Netflix doubled its subscribers in Canada
Netflix is up to 320.28 from 313.83

Buy Apple- 2 wins

Buy Apple around 465 if it rebounds & stays above
For 30 minutes-1hour expiration
Result: Won
Apple rebounded & expired @ 469.108 at 10:30am EDT, 469.78 at 11:00am EDT

After Apple broke above resistance @ 470, we stated that it will most likely stay above 470 at least for a while, if not for the day & it did for both
Buy Apple again @ 470 if it stays above, for 1 hour expiration
Result: Won
Apple expired @ 472.885 at 12pm EDT, also closed @ 472.69 at the end of the day

Trading Signals to watch

Trading today will be at a higher risk because of US debt
Federal Budget Balance at 2pm EDT should be negative as US is in more debt
Sell S&P 500 around 1690 if it stays below, for end of day expiration

However, there are still possible "Buy" trades to be made if stocks rebound
Buy Apple around 465 if it rebounds & stays above
Apple is too low & oversold, support @ 460, 465
Billionaire Icahn bought more Apple stock yesterday when it dropped below 470

Buy Google around 891.5 if it rebounds & stays above
Google announced 4 new Chromebooks
Google is upgraded to "Buy"

Buy Facebook around 45 if it rebounds & stays above
Facebook's Chief Operating Officer met with the head of China's Internet regulator & this might open doors for Facebook to China, which is banned in China
Facebook set a new record high just above 45 yesterday
Facebook is upgraded to  "Buy"

Buy Yahoo around 29 if it rebounds & stays above
Yahoo reached 800 million monthly active users

We prefer short term "buy" trades instead of end of day expiration because Federal Budget Balance might pull stocks down
Try 30 minutes-1 hour expiration