Guy Cohen

Will Samsung 7's problems be a boost for AAPL?

by Guy Cohen 11. October 2016 12:43

Samsung has a huge repair job on its hands, and I don't mean just to its faulty phones!  I mean to its entire cell phone reputation. 

So the big question is ... who will benefit from their mis-step, and can we take advantage?  Part of trading is spotting opportunities and acting on them, but we must still adhere to our proven rules.  We are not in the business of gambling on events blindly. 

The logical place to start is with the other Android brands, but many of them are not listed on the US exchanges, so that effectively leaves GOOG (Alphabet) and AAPL, both of which have earnings on 27th October.  

Looking at AAPL, it does look like a constructive setup, but the fallout from the Samsung situation will take at least a quarter to filter through into results, and so a play based on the Samsung situation would be highly speculative. 

So you must revert to the setup, meaning in our case, the OVI and the chart, which is at a breakout level right now.  Given that earnings is two weeks away, you need to consider whether to wait for the announcement to play out and hope for another opportunity.  As you can see from the chart, AAPL has gapped both downwards in April and upwards in July following its last two earnings announcements, though in each case the setup was indicative.  

That would nudge us in a bullish direction this time, but given the various other factors you may prefer to observe until after earnings, or only play a very small stake. 

aapl 2016.10.11a.jpg

Yesterday I mentioned a special 10-part plan for my OVI Traders Workshop in November, and several members have taken advantage already, leaving just five of those allocated spaces left.  

As with previous years, this payment plan will not be available very soon, so grab it now before it expires. 

Follow this link to the 10-part payment plan for the 2016 OVI Traders Workshop on 26th November

After the remaining five spaces have gone it'll be back to the regular plan for workshop. 

Also remember that all attendees will be receiving my FlagTrader application as part of this workshop, so you'll be able to identify and act on great OVI setups at will. 

Follow this link to take advantage 

All the best