Apple Priced For Perfection, Produces And Pauses

'' Apple Inc.

shares are unchanged at $132,65 in Tuesday's session. Let's examine the reasons why the issue is trading flat despite delivering a superfecta a good news. That being a Q2 beat for EPS ($2.33 vs. Est. $2.16), beat on sales ($58.01B vs. Est. 56B), increase in its buyback plan and an increase in its quarterly dividend from $0.47 vs. $0.52. In addition, the company is expecting inline Q3 sales from $46B to $48B vs. $47.15B. The initial response to the favorable news was a spike in the after-hours session after a brief dip $130 was a rip to $136. That level held up until it rallied past that level, reaching $136.20 in the premarket session. Most likely, a large player had identified that level as an exit point and was willing to sell all the stock it was offered. Once the HFT crowd became aware of the large seller, they began to step in front of the seller nudging the issue to $134.50 level just before opening of the regular session. Off the open, disappointed longs exited the issue and it declined to $129.57 before rebounding to its current level. One possible for the muted reaction to the great results was the trading action in the issue going to back to April 17 when it bottomed at $124.46 and began to move higher. In anticipation of the good numbers. Apple broke out of its trading between $122.60 and $128.57 from March 26 to April 22. After final clearing that level it rallied just past its all time closing high ($133), reaching $133.13 in Monday's session before closing at $132.65.