Assessing the Good and Bad Earners

After some premier firms reported earnings last night, the likes of EW in the medical device space continuing to thrive seems to be overlooked as the more popular names AAPL and TWTR garner attention. 

Apple still may no longer be a bonafide market leader, a mature brand indeed. However, on the first daily chart, below, bears should not be so quick to short this earnings rally. If AAPL can breach the highlighted resistance trendline dating back a full year I suspect it can sustain a bit more of a snapback rally, similar to the CMG scenario we discussed recently.

However, it is worth noting that one earnings beat and rally does not erase the damage of this chart in one fell swoop, despite the emotion of the moment during earnings season which is so prevalent. 

On the other side of the tape, Twitter is back to being the laughingstock for its many castigators. I, myself, had been very bearish on the name for a good while. But once TWTR held $14 several times earlier this year I turned more open to the idea of it bottoming. 

In other words, despite the uproar against the CEO and the way in which Twitter operates as a firm, the second daily chart below shows a rising 50-day moving average which may offer support on this fall--At least that would be the best bull case now for a final shakeout before a bottom in cemented. I am watching closely and with more interest than in recent memory.