Apple (AAPL) Losses Contained After Earnings

By now, you already know that Apple (AAPL) missed earnings and had lower than expected sales. The question now is “How do you trade it?” Personally, I’m coming into the day flat and looking at the levels established in after hours trading.

If you look at the after hours trading, you see that immediately after the earnings announcement, the stock put in a pivot low at $565 after a huge move downward. After that, it really just based around. If the stock can’t get above $580 and fill a big portion of this gap, AAPL might be out of play for awhile with another lackluster quarter possible ahead of the release of the iPhone 5. Many firms are coming out and saying AAPL is a buy on any weakness today, and I don’t disagree.

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All in all, I think there will be opportunities to make cash flow trades throughout the day today, but don’t be all in. As a trader, keep it light and know your ranges and your levels.

Here is a daily chart showing the support levels to watch and where it hit after hours.

(click to enlarge)

Disclosure: Scott Redler is long SPY puts

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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