"Apple Profit Beats Forecasts, but iPad Sales Disappoint"

That is what the news is saying to explain AAPL shares falling 6% after hours.

Really? Come on, if AAPL shares were up 6% after hours the headline would read, "Ipad sales Disappoint, but Apple Profit Beats Forecasts." You know it, I know it--the news DOES NOT matter. For long-term investors, however, Apple beating forecasts is good news.

Let's analyze the stock. From August 31, 2010 to October 18, 2010, AAPL traded from $240.35 to $319.00; a 25% gain in just a little over a month. For a company as big as AAPL that is huge.

Earnings have already been factored in to the stock by Wall St. you see? Wall St. put the bottom in the stock, watch the stock rise and held it into earnings that they knew would beat expectations. The retail investor buys into the "good news of profits" and Wall St. sells to them. Needless to say, they are down 6% after hours.