As the quarterly reports calendar shows, this afternoon’s big event is the Apple and Amazon earnings releases. I wanted to share the Reaction Graphs for both of these to illustrate, over a very long period, how the market has reacted in the past to these events.
In the case of Amazon, the last three quarters have yielded a negative result (although the last one was quite modest). The gargantuan upside surprises are way in the past.
Apple, being an older company, has a lot more data. As you can see, the left side of the chart is jam-packed with big blue bars, showing how it was virtually a sure thing to bank on nice upside profits with every quarter. It’s far more of a mixed bag lately, with much more muted moves.
I have positions in neither of these. I came into the day long AMZN January puts, but I sold them at a 17% profit, thus assuring you that Amazon will have an historic plunge this afternoon. You’re welcome.
