Nervous Investors Taking Chips Off The Table Ahead Of Apple's Q3 Report
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Apple Inc. (NASDAQ: AAPL) shares were trading lower by $1.17 at $130.90 in Tuesday's session. It appears investors are cashing in on its $10 plus run since the July 7 close ($120.17) ahead of its Q3 report after the close.
Adding to the paranoia of a potential miss is the drubbing in International Business Machines Corp. (NYSE: IBM), which was trading lower by $8.22. The company beat on the bottom line, but missed on the top line and issued poor guidance.
It should be noted that IBM staged a similar run to Apple's ahead of its report, rallying from its July 8 close ($163.16) to $173.22 by Monday's close, before giving back all of those gains in today's session.
Off the open, Apple found willing sellers a nickel ahead of Monday's high ($132.97), only reaching $132.92 before collapsing. So far, it has reached $130.32 and is attempting to rebound. If the decline continues, the identifiable support level does not come in until Friday's low ($128.31).
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