Why Apple's Technicals Trump the Fundamentals

NEW YORK ( TheStreet) -- Apple's ( AAPL) stock action on Wednesday was indicative of technical resistance at $97.  The stock began the day  up $2 but finished in negative territory.  Today, the selloff continues. Shares, at $93, are down nearly 2%. 

This pre-earnings window has been a good one as we were able to raise the momentum sell point to $94.50.  Our objective, however, is to preserve capital for the post-earnings run, which has much more potential as we approach the iPhone 6 and iWatch catalysts.  We're selling the entire economic timing allocation of AAPL calls with the stock set to close below $94.50.  

Why should we allow a minor technical alert to supersede Apple's strong fundamentals?  It's an interesting question. 

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Apple fundamentals grow stronger by the day.  Just this week we received the unexpected news that IBM (IBM) will offer Apple products pre-loaded with custom built enterprise apps.  This is huge news. 

Opportunity for expanded penetration exists. Implementation of big data analytics has plenty of room to grow and this partnership between Apple and IBM will pay dividends for years to come and could actually revolutionize industries. 

So now we have IBM selling iPhones and iPads, we have China Mobile (CHL) prepared to sell the larger screen iPhone 6 to a country that craves the larger screen, we have Apple TV with rights to the NFL package, we have iBeacon on the cusp of changing retail, we have Homekit, Healthkit, iWatch, wearables, the Internet of Things...the list of fundamental advantages for Apple goes on.

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