The summer of 1997 was a very interesting time for both Apple (AAPL) and Amazon (AMZN). Major events that made history. More on that a little later.
I thought it appropriate to look at these two superstars since they both reported earnings this week. Apple was up first and disappointed. Amazon came second and pleased investors.
Apple announced earnings after the market closed on Tuesday. It had been in a short-term downtrend and then when investors didn’t like the news, the stock got hit, closing down 6.2% on Wednesday.
As I mentioned the stock was already in a down trend. Look at the daily chart below. Apple closed at 112.10 on April 14. It ended this week at 93.74 down 16.4% in 11 trading days.
Now I saw many folks today talking about the potential support that could be coming in the 92-93 area, as that was the August low and the January-February bottom. But I think there is something very interesting on the weekly chart below.
The large descending triangle portends much lower prices. Of course Apple needs to break the lower horizontal boundary, which it closed just slightly above.
The picture looks negative and syncs with my long-term wave count that it has completed a large bull run. When you read the summary of the earnings results and outlook provided, you can understand why the picture is what it is.
Amazon
Amazon on the other hand released their earnings after the market closed on Thursday and the stock exploded, closing up nearly 10% at 659.59. That puts it up $177.53/share or 36.8% since its February 9 low.
But Amazon also looks like it completed a large 5 wave bull run at its December high. Since the first move down from that high is a 3 wave move, I am expecting AMZN to move up to test that high then turn down.
Summer 1997
It is really interesting to look at both of these stocks on a monthly basis. Jeff Bezos founded Amazon on July 5, 1994. It started trading on the Nasdaq on May 15, 1997. Two months later, in July 1997, Steve Jobs came back to Apple. And the rest as they say is history!
So I thought it would be interesting to show the stock performance of these two amazing companies since the summer of 1997.
Apple’s stock peaked before Amazon in September 2012 and again in April 2015. It has now closed for the 3rd time out of the last 4 months below that September 2012 high. Amazon is still holding on but for how long?
Today’s Video
The video below is a very brief view of what I provide to my Insider Members. Enjoy and share.