- Apple (AAPL) never came close to breaking its Tuesday evening after-hours low during Wednesday's regular session. But as happy as bulls may have been to see the stock close in the mid-$120s, let's keep in mind the stock is still trading in the same channel it's been in for five months. Trade the channel, or sit on your hands and wait for the channel to break.
- For those deranged souls willing to stare death in the face, look at Devon Energy (DVN). The stock bounced from just beneath $51 on Wednesday, the same general area buyers stepped toward in July 2009, October 2011, late December 2012 and April 2013. It's also worth noting the Relative Strength Index (RSI) is printing near 21 (oversold). There's no question this stock looks horrid. But if you fancy juggling pinless hand grenades, this stock might be worth a look with defined risk beneath $48 to $49.
- As an update to Wednesday's Trader's Notebook, Qualcomm (QCOM) reported earnings after Wednesday's close, and was promptly sold about $1.30 lower. As discussed, my view is based solely on technicals. And given my view that bad things tend to happen from beneath the 50-day and 200-day moving averages, I see no reason for bullish traders to spend much time on this name.
- Amazon (AMZN) reports earnings after Thursday's regular session close, and while its chart is the exact opposite of Qualcomm's, I'd advise caution. The stock has exploded more than 10% higher since July 10, and, in my view, is very extended from all short-, intermediate- and long-term moving averages. Briefly, we simply don't have a low-risk opportunity to get long this stock. If you insist on playing AMZN, do it from the long or short side, consider doing so via options so risk is more clearly defined. And if you're planning to sell AMZN short into earnings, do so with the full understanding that the stock is in an incredibly strong bull trend.
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