The_Unwind
Short

Apple's Earning's Warning Not Fully Discounted By the Market

NASDAQ:AAPL   Apple Inc
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Apple's earnings warning on Jan.2, 2019 has not been fully discounted by the market,
and as a result the stock seems susceptible to new large price rollover when the actual earnings
are announced in two weeks on Jan.29

The warning listed 4 key material adversarial items,that could impact results,
none of which shows any signs of abating. in the new year.

1. Lower I-Phone Sales
Just this past week published reports noting 3rd party sellers in China,
slashing prices of Apple's latest phone models by up to 25%,
and still not being able to move previously purchased inventory.
Keep in mind Apple raised their phone prices in some instances to over $1300 a phone,
when some of the best selling phones in China now have price tags of 600-700 a phone.
2. China
Warning about the slowdown in the Chinese economy.
Latest Economic Number,economist's noted notoriously high balled shows a 49.8 reading, below the 50 % threshold for growth.
3. Trade War With the US
Although talks with the US are being held, and more are scheduled
current US administration policies will not appease for the sake of agreement,
so any meaningful measures of trade relaxation should be met with skepticism.
4. Exchange rates.
US Dollar continues to be very strong, putting constant purchasing pressures on foreign countries.

Technically, Apple's stock has snapped back recently to the 152 Support Area ,
thus already satisfying the technical expectation,and thus is primed for another move lower.

CMF Money Flow shows volume has already peaked in this rally and has begun to rollover,
although the full impact of all of this will probably not be seen or felt until the actual Jan.29 earnings announcement.

The stock market as a whole has seemed to trace Apple's stock price movement lockstep, for the entire bull market.

If I am correct in my negative assumptions about Apple ,
then what do you think the market's reaction could be,
when their earnings are released in two weeks, on Jan.29 ?

AAPL Last 152.29

THE_UNWIND
1/13/19
NEW YORK

Comments

Apple remains one of the favorites among the FAANG stocks. It is currently at attractive prices. I don’t think there is a significant change in the sentiment to Apple. I anticipate the price to establish a new range and consolidate for awhile. The fund managers have to buy equities and Apple will make to their portfolios at this low prices. We will see a different picture if the whole market goes down but then every company will be on the same boat...
Reply
not in 2 weeks, but next one we will see how the banks are scoring... and if. all the best and hang it tight.
Reply
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