Apple: Priced For Perfection?

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

'' Apple Inc. APPL shares are trading higher by $1.27 at $131.55 in Monday's session. All eyes will be on the company's Q2 earnings reports that will be released after today's close. The Street is looking for EPS of $2.11 and revenues of $55.19B. It will be attempting to beat for EPS for the tenth quarter in a row dating back to Q4 2012. Over that same period of time, it has rallied from the $65 to its current price. It seems as whomever has not owned the issue since that date, was in a hurry to purchase it in today's session. After a higher open ($132.31 vs. Friday's close of $130.28), it briefly retreated to $131.15 before resuming its rally. The ensuing rally has taken the issue to very important resistance level, its all time high ($133,60) made on February 24 and its all time closing high price of $133 that was made on February 23. Today's rally was halted right at these critical level as it peaked at $133.16 before falling back to $131.50 level. Interestingly, statistics show the issue favors the short-side off an earnings-driven after-hours gain in post- close session. Although this was certainly not the case after the reported a blowout for EPS and revenue for Q1 on January 27, rallying from $109.14 to $115.21, history tells a different story. On many occasions, the issue has posted large after-hours gains only to relinquish some of it gains or actually reverse course on more half of these occasions. Furthermore, on the downside, when the results produce an after-hours decline, there is a pretty good chance the declines will continue into the regular session. With the boat fully loaded with long's and expectations that the company will again blow away Street,coupled with the issue trading near its all time high, the bar is set very before today's results are released.