This week’s Apple trading strategies (9/9-9/13)

Apple’s Sept. 10 “By Innovation Only” event edition.

To get things rolling, here are Dan Nathan, Carter Worth and Mike Khouw on CNBC Friday in an episode titled “Here’s how to play Apple into next week’s iPhone event”:

Here’s how to play Apple into next week’s iPhone event from CNBC.

Disclaimer: Having never owned or traded Apple, I have nothing to add. Don’t blame me if you drain your IRA doing something you read about here.

See also: Last week’s Apple trading strategies. 

3 Comments

  1. Gregg Thurman said:

    I don’t see a “strategy” here that I’m comfortable with.

    “Buy the rumor, sell the news” has been a long-time mantra among AAPL traders. The wisdom in that mantra is born out in the historic trend of the past 8 years of daily trades.

    From last Monday’s intraday low to the intraday high this coming Tuesday AAPL rallies (on average) about $6.00. Then from Tuesday’s intraday high AAPL drops about $8.00. It is at the point about 8 days later that AAPL rallies (again on average) about $12.00, then drift down until the week before earnings (Buy the rumor, sell the news all over again).

    Historically, without influence from black swans or politic maneuverings, AAPL experiences a very brief rally (4 days) after October earnings then goes into a two-week selloff. November and December are bumpy months for traders.

    All the above becomes bullcrap if, and when, the US and China become “friends” again, a strong possibility shortly after October’s face to face meeting. I say “a strong possibility” because of Michael Thompson’s observations, my own observations and the following (must read): https://www.scmp.com/economy/china-economy/article/3026211/china-export-fall-unexpectedly-august-trade-war-continues

    Trump may, or may not, be re-elected, it really doesn’t matter as China’s economy cannot survive another 16 months of this “tiff”.

    AAPL is being depressed by all the negatives associated with the China tariff war. A settlement will release AAPL from those bonds with a pop of up to $20 following.

    In my opinion, the much-discussed recession is not going to happen, a trade deal will be signed before the December 15 tariffs apply, and AAPL will pop prior to January earnings. For those reasons I am going long a few Calls with a January expiry, but not until after October earnings.

    1
    September 8, 2019
    • Gregg Thurman said:

      Sorry about some of the confusing sentences. Obviously I didn’t proof before posting. Hopefully the reader understood what I was trying to convey.

      0
      September 8, 2019

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