Daily Stock Market Equity and Options Trading Commentary

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Wednesday, April 22, 2009

Stock Market Can't Stay Green for Earth Day & A Couple Highlights from The AAPL Conference Call

As the pre-market indicated it was going to be a rough day, but as the day progressed it looked as if we were going to be GREEN for earth day. However in the last 20 minutes the S&P 500 and Dow sold off and finished in the red. However the Nasdaq held strong for the day before monster reports from Ebay and Apple. Speaking of Apple, they are about to roll over the 1,000,000,000 mark for apps downloaded for the iPod Touch (just 9 months). I think they are a very strong company with plenty of growth to come. I still think on a fundamental basis AAPL is cheap. Apple blew out the quarter beating estimates by more than 20 cents a share, and is currently up about 4% after hours. However I think the overall market tomorrow will influence Apple. Even with a blowout quarter it is possible Apple might sell off. The news released from GM today was quite scary and I believe was a major reason the markets sold off. GM apparently will not be able to make their first payment on June 1, therefore they may be looking at doing a debt for equity swap- more pain for the shareholders. The good news is that if GM goes to zero ($0 per share), the Dow Jones Industrial Average will only drop by 13.46 points! However depending on how investors take this news, could have a greater or less affect on the markets. Today I bought my BGZ covered calls back and I plan on writing them back out if the market sells off a bit tomorrow.

I am in on the Apple conference call now so I have to keep this post short... Happy Earth Day (hence the green apple).

Two of the best things I heard out of the AAPL conference call today:
They'd like to be into China within 1 year
They look forward for Steve Jobs to return by June

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