≈ It’s the Reaction that Matters. ≈

Traders,

Tech kingpin, Apple, stepped up to the plate and whiffed on earnings. CEO Tim Cook blamed supply constraints, saying the inability to get semiconductors cost the company “around $6 billion.”

It’s disappointing, to be sure, but since AAPL stock rallied so much on Thursday, it had room to fall without destroying its uptrend. As I type, the stock is down a mere 3.5%, which is well within of expectations.

The tech-heavy Nasdaq is taking it on the chin, but I’m encouraged by the relative strength elsewhere. The Russell 2000 is opening this morning nearly unchanged, confirming last night’s disappointing numbers from Apple and Amazon aren’t causing widespread selling.

On another exciting note, with Apple dropping and Microsoft soaring, the software giant has now taken the top spot as the most valuable company on the planet.

#TeamTackle

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Chart of the Day: Apple Sours

Apple is down 3.6% in early trading Friday. Let’s see if buyers show up at the rising 20-day moving average (red line).

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Video of the day: Fundamental Analysis for Beginners

Fundamental analysis is one of four pillars that we need to learn to ensure that our trading foundation is rock solid. Essentially, Fundamental Analysis is a system of comparing the valuation of one company versus another. There are a million different metrics we could use to compare companies but we are going to focus on a chosen few that have served me and my peers well in their investing and trading lives. We must remember we need a thorough understanding of the business we are in but that doesn’t mean we need to know every detail of every aspect of the business.

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Today’s line up

Traders Lounge 11 PM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cash Flow Club Replay

If you missed last night’s episode with Coach Tyler Craig on Finding Trades or would like to watch it again, check it out here.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

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Financial freedom is a journey

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