"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey
Clearly, Apple (AAPL), Research in Motion (RIMM), and Google (GOOG) have been the momentum players favorite stocks. Yesterday, RIMM's earnings disappointed the street, and now I believe Apple is next.
Here's my rational. RIMM's Blackberry is a great product. But, it is also expensive, and expensive to use. Apple's iphone is also a great product, but like the Blackberry, is very expensive to use. The monthly bill, and additional charges can cost the average user a ton of money.
The Blackberry and iphone is easily affordable for many corporate users, but the average consumer, who from 2003-2007 was spending money they didn't have on things they didn't need is finding both of these products eating heavily into their monthly budgets.
Granted, some generation "D's" would rather have the latest and greatest cell phone than have money to buy food. But, I would not be surprised if some who bought the last generation phones (Blackberry & iphone) aren't getting their services turned off for lack of payment.
Oh, by the way, generation "D's" means...Dummies.
Someone on the financial channels speculated that Apple is taking business away from RIMM. I agree they may have, but I cannot believe the average consumer can afford, or justify, the purchase price, and monthly usage charges of an iphone.
Today, On TipsTraders.com, I am initiating a short position on Apple.
In addition to weak consumer spending, I made mention on Wednesday that the RSI value of Apple was clearly in the "sell" territory.
Apple (AAPL)- RSI Values: 7days-80.00,7 weeks-84.42,7 months-77.06
RIMM sold off 13 points today, and their RSI's were not as high as Apple's.
Research in Motion (RIMM)- RSI Values: 7days-77.88,7 weeks-69.74,7 months-59.89
Another scalp trade on the downside could be Google (GOOG). Don't talk to me about advertising rebounding anytime soon. Clearly Google is also priced for perfection.
Google (GOOG)- RSI Values: 7days-88.53,7 weeks-78.79,7 months-71.04
The Rest of the Story
Hewlett-Packard's (HPQ) CEO came out yesterday and said Mark Hurd said H-P's portfolio of computer hardware, software and services has put the company "in the best position we have been in" for several years, and that despite the recent slowdowns in IT spending, H-P's "best days are ahead of it, not behind it."
Oh, Yeah. Well explain this Mark. Why are you, and several other HPQ insiders selling your stock, and exercising options and selling?
