You just can't keep Apple out of the news, which may be a good strategy for the company considering that out of sight is out of mind for many. Today, the company announced that it is slashing the prices of its iTunes Plus downloads from $1.39 per song to just 99 cents - in line with the rest of the iTunes offerings. The unique thing about the Plus service is that all songs are free from digital rights management (DRM) software. Apple also stated that it will increase the number of Plus offerings to about 2 million songs.
Riding the wave of good vibrations in the technology sector and the iTunes Plus announcement, shares of AAPL are more than 1% higher in early trading. What's more important, however, is that the stock has broken through short-term resistance at the 170 region. This level had capped Apple shares since October 8, though the equity's rising 10-day moving average held it in contention for an upside move.
On the sentiment front, pessimism continues to creep into AAPL's backdrop, which is seen as a potentially bullish indicator from a contrarian perspective. The stock's Schaeffer's put/call open interest ratio (SOIR) edged higher overnight from a reading of 0.96 in the 68th percentile to today's reading of 0.98 in the 70th percentile. Eventually, this pessimism will have to unwind, providing a potential wellspring of additional buying power for the stock.