For the last six weeks, AAPL has end the week with higher prices. There were two recent occurrences with more than six consecutive up weeks. One of them was the seven consecutive up weeks run in early 2012 and the eight consecutive up weeks that started in July of 2012 which led to an all time high above 705 and started a dramatic sell off to a low around 385. Since earnings will undoubtedly generate high volatility for AAPL stock price, one must be prepare for the possible reversal after earnings due to recent run up. Even if the price does not reverse, after six or seven consecutive up weeks, the prudent thing to do is exercise protective measure to lock in some of the profits.
(click on the chart to get an enlarge view)
On the daily price chart, one can see the priced in price levels are near some of the key technical levels. The upside price move is projected near the 141% Fib extension near 555, and the downside price move is projected to the vicinity of the 50 SMA and the pivot level of 490.
Another high flying stock schedule to report earnings on the same day as AAPL is FSLR. Recently the solar stocks have been hot and FSLR is no exception. The options market is pricing it to move up to near $60 or down to near $45 on earnings. On the weekly price chart, it shows the price has been moving within a rising price channel.
The daily price chart for FSLR also show the upside move is near the high made in May of this year, and the downside price move is near the August gap. Once again, these projected price move levels are near key technical levels.
On Tuesday, 10/29/2013, one of the more successful social media IPO stock, LNKD is scheduled to report its earnings. The market is pricing it to move up or down $27 on earnings. The rising price channel on the weekly price chart shows the upper trend line near 268 coincide to the upside projected ER price move, and the low made in early October pull back is near the projected downside price level near 214.
A closer look at the price levels on the daily chart again reveals how the market price these earnings price move near the key technical levels.
FB, the largest social media IPO that went bust then boom, is scheduled to report its earnings on Wednesday, 10/30/2013. When FB reported its earnings last quarter, its stock price reversed to the upside and rekindled the market's love affair with it. Currently, the market is pricing in a move of $7 up or down, and that places the price level at the 127% Fib extension near $59 on the upside and $45 on the downside near the 78% Fib retracement.
There it is, four high beta stocks with market moving ramifications are due to report their earnings next week. The month of October will not come to an end until after FB reported its earnings. So far the month of October has been a good month for the market, but do not let your guards down, the market has a way to surprise us when we least expect the unexpected.
Disclosure: Long APPL Call Spread.
