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Dr. Kris
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Dr. Kris hails from the land o' lakes, beer, bratwurst, and Bucky Badger. She traded in her cheese hat for a propeller beanie and has never looked back. She has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her... More
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  • Market Notes: Is Apple A Buy? -- July 24 0 comments
    Jul 24, 2013 8:19 PM | about stocks: AAPL

    Just as predicted yesterday, the euphoria surrounding Apple's better than expected earnings report boosted the major averages on the open but it was all downhill after that. The Dow Transport Index (DTX) continues to lead the market down while the VIX continues to notch higher--both bearish signs. The good news is that the VIX is still in bullish territory meaning that any correction could be short-lived. It's tough to know as the light volume accompanying the dog days of summer can amplify movements in either direction. We may see a temporary bottom tomorrow as today's end of day short covering is showing that the bears don't really want to be short longer than they have to. A rise in the VIX above 15 should be taken seriously and may be the signal that there's more downside in the cards.

    Today's Highlights: Is now the time to buy Apple?
    Yes, yesterday's expected earnings figures out of Steve Jobs' legacy company were better than expected but the bar set was set so low so a beat wasn't much of a surprise. Revenues are showing signs of slowing and margins are decreasing. Sure, Apple reported record iPhone sales in the US but much of that was due to consumers preferring the older phones at lower prices. Internationally, a just out article by the Motley Fool is showing the Apple's international iPhone sales are rapidly declining. Also, sales of the iPad may be in trouble with Google today announcing its new Nexus 7 windows tablet that is not only supposed to be more powerful than the iPad but it's also $100 cheaper. Ouch! That's definitely not going to help Apple's bottom line. With no innovative product offerings set to be unveiled (yes, they are working on a watch but so is everyone else), I don't think today's pop is a signal to jump in. The stock would have to fill the gap at $483--about 10% above today's close--before I'd consider taking a long position.

    Subscriber Notes: There are no new entries but I'm looking at a couple of potential shorts if the market keeps moving lower.

    Stocks: AAPL
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