Large Caps Like Apple and Google to Continue the Wall Street Rally

Apple joined the party after hours today, reporting robust earnings beating the streets expectations and sending the stock price higher. After hours, Apple soared to over $200 a share, reaching all-time highs. They also beat out Goldman Sachs, who reported last week, to that coveted $200 per share spot. Just look this graph to see how closely Goldman Sachs (GS) and Apple (AAPL) have traded since March.

(Since March both GS and AAPL have followed similar trends)

What’s in Store for Apple?

As for Apple, I currently don’t know what to expect out of this stock. I mean how much higher can they go? One thing, they are always innovators in the market launching new products and setting the tone for tech rally. After analyzing their balance sheet, the company is in a great position to move on and even acquire a company or two on the way. The problem is with the stock reaching an all-time high of $200 investors might get scared off on how much further it can grow. I would like to see a 2:1 cut to help entice investors back in with the support of a strong balance sheet and strong long-term prospects. Just look at what Apple has done since its initial offering.

Where’s its heading next? Not sure, but one thing I do know is that their recent break the bank earnings will help the Dow soar higher and lead on the tech rally. The other day I said that the Dow Jones will continue to rise over 10,000 in my recent article “The Dow Hits 10,000: Technicals Show the Earnings Will Continue to Rally” I am continuing to back this up and think that earnings and large cap stocks will continue the rally. We have seen the strength in earnings so far with the likes of Google (GOOG), International Business Machines (IBM), and Apple (AAPL). I expect earnings to continue carrying us higher. Another strong play is Tech. With the recent strong postings from both Google and Apple we see these companies have the ability to post a profit and that the economic downturn is not affecting them to much. So what I suggest to do? For Apple, hold off at $200 I think it might be a little overpriced. As for Tech though, buy in. Later this week I will do a run-down of what Tech Stocks I like and why. Stay tuned and make sure to keep playing the markets, otherwise you will lose out. Bullish times ahead!!!

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