Checking the Headline Stocks
Apple (AAPL) is back in its comfortable position of headline leader. Given enough time, between iPads, iPhones, and iPods, I expect we'll see everything from 1 inch to 10 inches, in increments of one quarter inch. All right, maybe I'm being a bit sarcastic here, but I feel this would be a short-term gain at a longer term cost. Clearly this is more about price-point entry than it is about size.
The risk here becomes inventory control more than sales overall, as long as Apple can maintain an adequate number of each offering in stores at the right time, not under-anticipating or over-anticipating each product. New product introduction along with holidays will be the tell-tale period. I would anticipate the introduction will go as all other products have gone over the past years, so I don't have worries there. After the initial three months, though, I do feel that Apple will have to prove that control. Therefore, I don't see the risk to be an initial risk but one going forward for two quarters after we see the smaller iPad introduction.
Netflix (NFLX) is flying this morning. I changed my tune from bearish to more bullish back on June 19, but the stock has far exceeded the move I was expecting. We saw the move I was looking for on Tuesday. The follow-through has been amazing today; however, this one has been mentioned by many as a short-squeeze candidate, and that is now what we are seeing. A move to $82.50 is very realistic, and the squeeze could take NFLX as high as $88 here. I am not shorting here....253 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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