Traders Lock-In Recent Overbought Apple Gains Following Samsung Event Short Covering
March 15, 2013 11:47 AM EDT
Despite Samsung giving 110 percent during its Galaxy S IV presentation Thursday, Apple (Nasdaq: AAPL) is ticking higher on the session Friday with investors feeling like the device won't pose too-much of a threat to iPhone sales.
Some are capturing some gains today as Apple has moved about 2 percent higher over the last week. From a close of $431.72, shares are trading right at the $440 level today.
Money flow is favoring a downtick in shares. The latest market data has about $2.16 billion moving on a tick lower, versus $1.15 billion for a tick higher. The 14-day money flow index shows Apple at about 33, rising up from 'oversold' levels hit earlier in March.
Another data point is that some increased short positions through the end of February. Shares held short rose 3.5 percent from February 15th through the 28th to 19.43 million, or about 2.1 percent of float. Traders might have been buying a little insurance into the Samsung event.
In any case, Apple regained the title as most valuable company, though that carries a little less weight now than when it first happened.
With the Samsung hurdle out of the way, investors are remaining focused on a new capital reallocation plan for Apple's $137 billion-plus in cash. A plan is largely expected to be announced in April, no nothing firm has emerged from Apple yet.