More AAPL analysis (4 reasons to think twice about AAPL's earnings as a trader)

The earning report was announced on Tuesday: EPS was $10.09 vs $10. This was considered a beat on headlines and caused a temporary short squeeze in the aftermarket from $405 to $429. However, something didn't seem right. I sold into the strength at $427, and currently hold a short position at $417. After months of defending this stock, I've decided to take a step back and join the dark side once again.

Wrong timing

I would like to reiterate that May is close. Although people may see AAPL as a safe haven in the past, it has to compete with the opportunity of gold's sell off or seasonal conversion back to cash. The increase of correction imminent announcements continue to ramp up, and timing as an investor is risky in this environment. As for growth traders, there are obviously better options elsewhere. Netflix, Facebook, JCPenny have been gaining massive volume lately. However, the focus is on AAPL.

Sales to Margin ratio decreasing

Revenues rise, but margins decrease. This means they are selling a lot more, but their expenses are more demanding. There is a notable increase to their selling expense and their manufacturing cost. This is a red flag for sure, but not enough to take money off the table. However, can they maintain the sales going forward? I don't think so.

Lack of new products

An official announcement of a new product has not come. Iphone 5s should be announced in mid-June. The tickets for WWDC sold out in 2 minutes. AAPL is making investors too eager. Until then, Samsung will be eating away at consumers's impatience to upgrade their phones to the Samsung Galaxy s4. As for AAPL's new iPhone ad collaboration with AT&T that promotes the camera; look at HTC One to win customers that are looking for a low light camera, better battery, and innovative speakers on their smartphones. An aggregate of Android based phones continue to eat away at AAPL's market share of smart phones and tablets. There a lot of niches that AAPL will chase, and the probability of catching up is dimming day by day.  A stock cannot rely on rumors of new product launches, because it's just fool's gold. Is AAPL really holding out for Haswell chips to decrease margins on their Macbooks? Apple TV? Consumers will not wait. Traders will not wait.

Value stock curse
A value stock is a value stock. Those looking for AAPL to appreciate from growth will be disappointed. AAPL is slowing transforming into a value stock the same way MSFT and CSCO have in the last decade. Sure, there is a "floor," but the floor is arbitrary and nothing more. It can either be at $400 or $200. I agree that it will slow downwards momentum, but a dividend increase and share buy back is bane for traders looking to make a quick buck to the upside. The only compelling case to hold for the upcoming week is to acquire that quarterly dividend, but there are higher yields elsewhere.

$420 is looking to become the new resistance as it was support only a month ago. If I am wrong about my target of $350, then there will be a lot of people that have positions in their 401k's and mutual funds that are tied into Apple's stock. Until then, investors' sentiment towards Tim Cook continues to turn sour.