Bulls Battle Bears

Well look what the after-hours has brought upon us!!

Once again, people are jumping onto the Apple (AAPL) bandwagon in droves…why might you ask…well Good old Apple as per every earnings season, sand bagged their outlook so people would only expect little from them…by doing this technique…AAPL beat expectations and the street whisper numbers to pull off an impressive quarter.

Good some might think, but breaking down the numbers, AAPL missed the mark on laptop shipments, was slightly up in IPOD sales…I wonder, with school shopping in the summer, what happened to those numbers of people shelling out money on college kid laptops? hmmm..does the “R” word come into play on that one with recession?? I’m thinking that we are going to see that slowdown…

However, impressed by me and many others…APPL beat the forecast on handset sales which is really impressive. With the most wanted item in a sheer monopoly, its inveitable that the new iPhone would sell like it did….

Now what is the new Google phone coming out on Wednesday of this week going to produce for shareholder…what is the lackluster performance of RIMM’s poor production of Bold going to do for the bottom line?

RIM really messed up this quarter. The delay of the Blackberry bold is going to hurt the final quarter and Q3 results. Orange in the UK has recalled the phone due to software problems, ATnT isnt yet selling it becuase they are having issues testing it…this has given Apple the lead. If Blackberry can produce two hits in this upcoming quarter, I will definitely shore up my holdings further on RIMM.

I did tell people to leverage down on AAPL in the past as many bought WAY to high. Those that dumped have probably seen the bottom now. If your planing on buying this stock on this point forward, notice that Apple did paint a slow forecast for the upcoming year. Beyond that, the stock will generally have an uptrend with those that bought in the 80′s probably going to sell off late in the day to take some profits off the table. So utilize a limit order and I can see this touching the mid to high 90′s again…so DONT place market orders as the price is already up in the 100′s….

Another thing I want to re-iterate tonight is…what is up with the Canadian dollar…like I knew and maintain, the par with the US currency was temp and us that hedged are closer to my price of 0.80 by another penny today. This brings the Canadian dollar to its lowest since 2005!! So many people were saying how immunity to the economic crisis will rocket the Canadian dollar as some sort of power currency…haha…our exports relied on the expansion of other nations…our exports is what drove our local economies…with global slow down, we cannot sustain a high currency and will see further negative numbers in employment and housing starts which will further pull the dollar down.

Other companies are posting their earnings this week. Watch for dips in the intra-day stock prices before purchases are made. Look how yesterday yielded strong gains and then today was a down day…this will be the trend as most investors are choosing to take short term gains rather than go long.

Happy Investing!
Aman, MBA

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3. Financials are winners Monday! + Tuesday Earnings