AAPL Where are the buyers?

AAPL just posted blowout earnings after posting a rare miss, rare because AAPL is known throughout the market to issue VERY conservative guidance, which they easily beat, it's the "Scotty" principle for any Star Trek fans, when the warp drive of the Enterprise fails during a Klingon attack, Captain Kirk asks the Chief engineer, Scotty, "How long before the warp drive is back up?" Scotty answers, "15 mins Captain", all the while knowing he can fix it in 5 minutes and appear to be the hero. It's a concept I've used in management as well.

In any case, with Steve Jobs gone, the question is, "Will the amazing innovation at AAPL continue?"

Blowout earnings aren't always the best thing for a stock because as mentioned earlier, it's not about what you did, but perception of what you will do moving forward and a blowout quarter looks like a high bar to beat, if the perception is "They can't do better then this next quarter", the stock will sell off and in AAPL's case, that's a market moving event, at least for the NASDAQ 100.

 Being that AAPL's gains all came in extended hours trading after their earnings (which we know smart money is not going to be buying-and lets not forget AAPL gapped up, but opened significantly lower then the extended hours trading highs), AAPL hasn't done much of anything since earnings. That divergence in RSI (Wilder's Relative Strength Index) is not a relative strength divergence vs the market, it's vs. AAPL's own relative strength.

 60 min 3C

 30 min 3C-Both of these charts seem to indicate that smart money has their doubts about AAPL moving forward.

 Today's open (5 min)

 2 min

 Longer term 1 min trend.

 Long Term Quarterly Sell signals, the first saw AAPL dip at least 10%, the second over 51% and now we have the largest signal yet.

 It's not just 3C, but Don Worden's Moneystream is saying the same, this is the man who invented tick volume which all other money-flow indicators were derived from.

 Long Term Volatility, remember an increase in volatility often marks a turning point.

 This is a 10-day average of where AAPL has closed within its daily range.

This is the same indicator on a weekly basis, moving up is good (green arrow), closing in the lower end of the range tends to be a negative.

Keep an eye on AAPL at $453, $451 and $450, especially watch volume should those areas be hit. One thing about a bear market rally is that it pulls in dumb money, creates a false sense that dumb money is missing out, it appeals to their sense of greed. This is an especially interesting effect in AAPL. Have you ever been to an AAPL message board? Try it sometime.  You won't find many traders there, you will find a lot of buyers who are in love with the stock. I LOVE Apple products, I love my wife, I love my job, I never fall in love with a stock. Upon a bear market rally break down, AAPL will easily be the most intriguing stock and probably trade as well.