UBCB - Apple: The Bull Trap Must Be Digested Before A Rebound

• Apple reported a solid FQ2 card but delivered weak Q3 guidance due to COVID headwinds in China. As a result, AAPL stock sold off post-earnings.
• However, a closer look at its price action suggests a bull trap had formed before its Q2 earnings. Therefore, the sell-off could continue until we observe a consolidation.
• But, we think AAPL stock's robust FCF yields could help defend it. Therefore, we believe that long-term investors should consider adding exposure on its weakness.
• We reiterate our Buy rating on AAPL stock.

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