Jerremy Alexander Newsome of RealLifeTrading.com talks earnings on three of the biggest tech giants—Apple, Amazon, and Google. Earnings are right around the corner… Have you decided how you’re going to play them?
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Hey traders from around the world, what’s going on? Holla at your boy, it’s me, Jerremy Alexander Newsome. This is your Investing Shortcut today. What we’re gonna be talking about is some earnings upcoming for some big tech stocks that influence the market and influence a lot of traders’ portfolios.
Apple (APPL)
First and foremost, Apple, right? Hard to go a whole day without talking about this behemoth of a stock. Apple right now, this year, 52 week range, we’ve gone from 89 to 145, huge move over the last 52 weeks, just incredible stuff. Dividend, the yield still looks pretty good, their P/E ratio and earnings per shares are solid, I mean, it’s Apple prices. Biggest company in the world. Let’s kinda talk about what we’re looking at. I will say, since we’re here together, I’m not gonna specifically mention which way the stocks are gonna gap on earnings, I personally do not know, I have no idea. I’m just really setting up a plan of what I’m looking for and what I want it to do.
This is a weekly chart of Apple. What you’re first going to notice is the previous all time high actions. I’m gonna point to it with a red arrow. Here’s the previous all-time highs on Apple. There’s two back there, and then obviously with the purple arrow, here’s the most recent one a while ago. What you’ll see is when we did have an all-time high, we broke out the all-time high, here’s another one back here, when we broke out of the previous all-time high, we eventually come out to re-test it. This big move right here is from 50 to 110. We broke through the all-time high and we eventually did come back and re-test an all-time high and then bounce. You also notice this nice little move right here, came down, it kinda re-tested this all-time high area and then bounced.
What I’m getting at is on Apple, this is the buying location right here, this price is right at the 134, 133 mark. Right now, we’re at 143, so we’re talking a little less than 10% of a pullback. I’m not saying we’re gonna get down there, but for those looking to investing in Apple, that’s pretty much what I’m keeping an eye on. That’s the location that you would want to buy. What I would do is you can measure the range on Apple here and come up with this particular size right here, and what you’ll see is these two rectangles, they’re the same length, they’re the same exact size. I think we have a long way to go on Apple.
You got this really big bullish move the last time that we broke out all-time highs, came back to re-test all-time highs, and then bounced, that’s the same thing we did. We had all-time highs, we came back, we re-tested these all-time highs, and now we’re bouncing. We also formed this double bottom looking pattern right here, see this little double bottom pattern, you have it right there, and again, just a really, really good move. This is kinda like a measured move, and I think in this measured move, we’re probably around this area right about here, on Apple. I’d like to see a little bit more of a pullback, it doesn’t mean it’s going to happen, but if you’re looking at buying Apple, that’s where I would keep an eye out to buy on earnings.
If we hop in here to a daily chart on the candlesticks, this candlestick chart, beautiful, beautiful gap today from Friday to Monday, today is Monday. You go with earnings, just simply right around the corner, I love the fact that we are kinda hanging out and trading sideways a little bit, allowing Apple to rest. Bottom line folks, if Apple does gap up nicely on earnings, it’s gonna continue to run, more than likely. Bottom line, bullish on Apple. Pretty much the sentiment, that’s what I’ve got.
Amazon (AMZN)
Let’s go check out Amazon, check on AMZN. We’ve got some similar analysis here on Amazon, again, earnings just right around the corner. Here’s your weekly chart on Amazon. This stock, a little bit more angled than Apple, in my opinion. What I mean by that is over the long term, you’ll see from 2010 until now, we’ve only had one or two big drops. Apple had a 50% selloff just years ago, but Amazon, not even close. Had a pullback right here, which is semi-significant, about almost 20%. Then you had one right here, which was on the verge of 30%, 35%, and you had one here which is about 10%, but realistically this angle, very strong, very powerful angle on Amazon. Personally, I do think they’re gonna have a split soon, and I could easily see Amazon being into the 1000, that’s right, $1000 per share on Amazon, easily see that happening.
Realistically, here’s what I’ve got on Amazon. I’m still gonna be bullish on Amazon as far as the trend is concerned, as long as earnings does not open below the low of this weekly candle. The weekly candle, the low of that, 833.50. As long as we stay above that particular price on Amazon, I think Amazon continues to go higher. My target is about 1,049.63, that’s my annual target for the year for 2017. 1,049.63 and I did that based off some advanced moves, I used something called Fibonacci analysis. I used that really quick to kinda show you how you can come up with that. Pretty much what you’re doing is you’re measuring waves, you’re measuring the rotational moves. This is a quick, freehand version, but you’ll see, you get very, very close to the target that I drew in, so around here.
Pretty much what I’m saying is I’m taking this wave right here, this major move, and you’ll notice it did re-trace nicely, so I’m saying how far will this measured move go? I think it continues higher. Realistically on Amazon, if I come back in here to the daily chart, what we’ll also see, similar thing that we saw on Apple, is we’re turning sideways right now, a little bit. If we gap up on earnings, Amazon’s off to the races. If we gap down again, I think this is the previous all-time high area, this 842 price range, that would be a buying opportunity as long as we don’t get below 833.50.
Google (GOOG)
Next on the list, the other big kahuna, I’m trying to figure out which one’s gonna get 1000 first, Google or Amazon. Looks like it’s gonna be Amazon, until today. Google, huge earnings coming up. I’m assuming they’re gonna be pretty bullish but pretty much all you need to know is Google made a new all-time high today with another very strong bullish gap and go right here. Strong, strong gap on Google. This little pattern on the daily chart, nice little double bottom pattern.
My expectations on Google is likely gonna keep running, and again, Google has already had a split recently. I say recently, about two years ago. But Google probably will also be $1000 this year, or early 2018, but it’s gonna get there. With this earnings potential, my main guess is I’m hoping for something like this. Some type of re-trace then a pullback, we’ll see if we get it. Last earnings, you’ll notice, we did something similar. That’s kinda what I’m hoping for, is last earnings we broke out at all-time high, before earnings we got a really good bullish gap, and then it ran three or four days into earnings, and then we get a pullback, which is what we got last time after earnings. That’s why I’m expecting or anticipating four. You’ll notice this double bottom pattern has happened before on Google, here’s another one right there. Double bottom pattern, broke out, re-tested the neckline of that double bottom and bounced beautifully.
Google, a very expensive stock obviously, Google and Amazon, but also can be played with options. I’m sure you know all about options, but options are really great opportunities to leverage stocks like Google and Amazon because personally, I’m not buying shares of these stocks, this is way too expensive but I’ll be using option leverage in order to actually trade those. But Google, big deal, and really if you wanna know how I’m looking at playing it, I’m really focusing in on what we did last time with earnings when we ran up before earnings, made new all-time highs, and we pulled back.
The Trend Is Your Friend
If we get something like this again, probably be looking at June or July, 870 calls on Google if it pulls back. Amazon and Apple, again, they’re pretty much at all-time highs so if they gap, if they gap up on earnings, I’m not gonna be bearish. I’m not bearish on any of the three. All three are more or less me saying where can we buy them, not should we or if we should at all, very strong trends, very strong trades, bullish, right? The trend is your friend on all three.
Hopefully this was helpful, if you have any questions you’re welcome to email me anytime, jerremy@reallifetrading.com. Thank you so much for watching, you guys rock, I’ll see you in your next Investing Shortcut.
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