AAPL: The Next Trade

Apple (AAPL) missed big on the top- and bottom-line in yesterday's earnings report, a surprising turn for a company known for routinely topping forecasts. The miss surprised Wall Street, dropping the stock about 5% back down to the $400 level this morning. The question traders and investors are asking now is: Can we buy this dip in AAPL?

Check out the video for a deeper look into the chart:

AAPL: Next Trade

Despite the lackluster numbers the company did, however, deliver better-than-expected outlook for the fiscal first quarter 2012, which starts in October. The company said it expects earnings of $9.30 a share, while analysts expected $9.01 a share. The company has a reputation of sandbagging guidance figures, so the greater than expected guidance is even more significant. AAPL has its share of critics who say it is an over-crowded trade, but shorts beware that next quarter's earnings could be blockbuster after the launch of the iPhone 4S and continued growth of iPad.

From a trader's perspective, there will almost certainly be a lot of volatility in AAPL shares today. If buyers can fill much of this overnight gap, it would demonstrate that investors are giving the company a pass for this report.

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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management. At the time of publication, Scott Redler was long AAPL calls.