Investors bid Apple higher on Thursday making it among the Nasdaq's biggest boosts. Yesterday after the bell, the tech titan reported a jump in quarterly earnings on higher iPhone sales, easily topping analyst expectations.
For the quarter Apple shipped 3.79 million iPhones and 11.01 million iPods beating estimates. Mac computer shipments totaled 2.22 million, down from last year but in line with expectations.
In fact, Apple’s CFO said that they had the best non-holiday quarter in Apple’s history.
Now that the earnings play is done, how should you trade Apple?
SMB Capital senior trader Jeff Tomasulo sees a technical trade. In fact he sees two of them.
He says, "if the market continues to go higher I think investors should get long Apple if it trades above $126.25 – a point of past resistance."
And on the flip side, if Apple and the broad market fall Tomasulo suggests playing it from the short-side. "If Apple slides to $122 with the SPDR at $82.60, I’d expect a retracement in Apple down to $110," he says.
Too technical for you.
Oppenheimer analyst Yair Reiner has some fundamental insights. He says, “as the world economy began to spiral the big question on investors' minds was if the Apple brand was going to be resilient or particularly susceptible. I think that what these results show is that Apple and this brand are relatively resilient."