"Apple (AAPL, $213.35, 10.28), a holding in our model portfolio, delivered another blowout quarter, though the results were enhanced by a change in the way the company accounts for iPhone and AppleTV revenue," notes Geoff Seiler.

In his BullMarket.com advisory, he explains, "Even without the accounting change, Apple reported strong sales across its product line. It sold 8.7 million iPhones during the quarter, 3.36 million Macs, and 21 million iPods.

"The bottom line was that Apple reported a 50% increase in profits for the quarter ended December 26th. It earned a record $3.38 billion, or $3.67 per share, compared to $2.25 billion, or $2.50 per share, in the year-ago period.

The stock market was a roller-coaster today, and suddenly over the last week and a half we have gone from a market where volatility was very low to one where triple-digit DJIA point moves occur and get reversed in almost the same day. The VIX even opened right over 26.0 today before selling off. We started the day mixed, then went very positive, and then went very negative toward the end of the day. Earnings are still strong, but valuations are weighing on investors as you see many names selling off even after good earnings. The wide budget deficit only highlights more and more long-term concerns.

Here were the unofficial closing bell levels:

Dow 10,200.19 +3.33 (0.03%)
S&P 500 1,092.17 -4.61 (-0.42%)
Nasdaq 2,203.73 -7.07 (-0.32%)

Top Analyst Upgrades & Downgrades
Top Day Trader Alerts

Tomorrow we are not going to see people landing on Mars, or North and South Korea unite, or the end of poverty and disease. However, the long awaited Apple (AAPL) tablet computer will be unveiled and from all the excitement it has generated it might even be bigger news than that.

It seems everyone is anticipating that Apple's latest device will have the ability to balance the federal budget and eliminate the deficit. After all the hype anything less may disappoint.

What is Hewlett-Packard (HPQ) up to? Is it, like Apple (AAPL), trying to bring a digital wireless tablet pad computer to market? That's what it seems like from its recent trademark applications. Dig this marketing line: This is my Zeen. It is the key to my Airlife. Oh brother. This is what Harvard marketing MBAs produce? Maybe Gilette would be interested in the name for a new razor. But a gadget?

Taking note of HP's recent trademark applications, one would think it is going to have a wireless gadget of some sort available for sale in the near future. The term "airlife" reeks of constant wireless access, probably using a partner like AT&T (T) or Verizon Wireless.

One thing we know: Apple's (AAPL) iPhone is so massively popular that the network it officially runs on (AT&T's) often has a hard time keeping up. Densely-populated areas have problems with dropped calls and unreliable data services since so many iPhone users are choking the network. It got so bad that AT&T stopped selling the iPhone from its website this past weekend, seemingly trying to slow sales down because its network couldn't handle it.

So what happens when Apple releases the next, best thing? The blogosphere and tech press are totally psyched over the pending release of an Apple tablet or pad computer -- one that will "change the world" no less. But nobody is asking the question of usage problems. If an Apple tablet is announced in January and released shortly thereafter, are the wireless networks the device will run on be overwhelmed?

Apple, Inc. (AAPL) has not yet joined the netbook PC race, even though that segment of the personal computer industry has been on fire in the last year in terms of overall sales. Apple, as usual, has derided the category as older machines with cramped keyboards and limited usefulness. Consumers apparently are not listening, as netbook PCs continue flying off the shelves.