I was at the Apple Store retrieving my flawlessly-repaired (seemingly new again) MacBook Pro, and managed to monitor Tim Cook’s earnings call even with a couple technical guys at the local Apple Store nearby, writes Gene Inger on his Mac.
I am surprised at the lost transparency on poor sales of premium models.
I point out that when iPhone Xs and Max launched that they were quickly delaying delivery dates, so sales would be posted in the next Quarter. Thursday’s earnings report was for Fiscal Year Q4, hence it’s not really inclusive of sales of the new phones by more than a few weeks.
It is my view that the average selling price is high but will be even higher for the future, unless somehow the XR (lower price model) has massive sales.
Reuters: Wall Street reverses three-day rally Friday as Apple falls, trade optimism fades.
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Looking for cushion over the past couple sessions, traders pushed the S&P 500 (SPX) up sufficiently so they’d have some room to work with, within ensuing pullbacks. Those can either be re-tests of recent lows or early phases of a new leg down in the market.
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I know it sounds sacrilegious to even suggest that since so many managers and analysts have declared a major bottom. It makes no sense; although I know what they mean with regard to value stocks, just as I assessed correcting on a rotating basis throughout most of the year.
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And it sounds strange since the very pundits starting to panic on Monday’s plunge suddenly declared “FANG was back” and all was fine again. One of the big firms even suggested that all we had was a correction in a primary or very long cycle that has years to go on the upside.
If only it was so simple.
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The reality: there are bullish alternatives. And there are ways for a typical year-end rallying phase to kick-in, but it's not happening Friday and any rebound will be in-context of testing recent lows at best, and eclipsing them at worst.
If that happens, algorithmic selling returns.
More on Apple this week:
Jon Markman: Why investors need to know about Apple's self-serving privacy strategy.
Jon Markman: How Disney, Apple threaten to cut cable cords. Buy DIS on weakness.
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