How To Forecast an Earnings Reaction: AAPL, a Case Study

“The fluctuation of share prices is roughly proportional to the square root of the price.” – John Templeton

Anyone can get into a stock. Getting out is an art.

In my experience, there is no tool better than the Square of 9 Wheel of Time & Price, which decodes the Principle of Squares, for pinpointing

When to risk is ripe on the vine and it’s time to lock in gains ahead of the crowd.

Legendary trader and market master W.D. Gann wrote when time and price are square, expect a change in trend.

On Wednesday night I posted the following square of 9 images on AAPL showing a Time & Price square-out at the 292 region.

In other words, 292 is square AAPL’s 212 March low as well as being square April 29.

Let’s take a look.

Red is 212
Blue is 291/292

Red is 212
Blue is 292
Green is April 29

Notice that AAPL’s March 212 low is square April 29 and that 292 is straight across and OPPOSITE 292.

The presumption was that AAPL was at resistance and a trend change of some degree was on the table.

With earnings due, you didn’t have the chance to wait for price to validate the setup.

You puts up your money, you takes your chances.

That said, when tried and true technicals coincide with the message of the Square of 9, it presents a strong likelihood for such a trend change.

The following daily AAPL from February also pointed the way lower.

Notice that on Thursday, AAPL tagged a stealth declining trendline from its February all-time closing high.

As it happens, its all-time high was also a square-out with 327 OPPOSITE 170, the last major swing low in June 2019.

Red is 170
Blue is 327
Green is April 29

Notice how the 327 all-time high aligns with 327 (and 170 for that matter).

So a trend change was due for Thursday, April 29, as it aligned with the price of APPL’s all-time high.

The earnings were a catalyst obviously, but as I like to say, the news breaks with the cycles, not the other way around.

AAPL was due to report Thursday after the bell.

It closed at 292.80 on Thursday.

After reporting, AAPL is trading down more than 9 points to 284 pre-market.

Pos AAPL