Premarket: Apple is green. Update: Well that sucked

apple premarket 5-28 Chestnut HillFrom CNBC’s “Dow futures surge more than 500 points on hopes of a coronavirus vaccine” posted early Tuesday:

American biotech company Novavax said Monday it started the first human study of its experimental coronavirus vaccine. The company said it expects initial results on safety and immune responses in July. Last week, another biotech Moderna reported positive development on its vaccine trial where all 45 participants had developed coronavirus antibodies.

Meanwhile, investors kept an eye on the U.S.-China tensions, which showed signs of escalation over the weekend. White House National Security Advisor Robert O’Brien said Sunday the U.S. will likely impose sanctions on China if Beijing implements national security law that would give it greater control over autonomous Hong Kong.

“Next month we will know Bank stress test results; whether oil prices are a bounce or something more sustained; and if we have moved out of COVID season or into a second wave,” Christopher Harvey, Wells Fargo’s head of equity strategy, said in a note. “If things break positively, we would expect to see a healthy rotation toward cyclicals, smaller caps, and value stocks.”

My take: A new all-time high is in our sights.

UPDATE: A tough slog down to $316.73.

apple premarket 5-28

4 Comments

  1. Jerry Doyle said:
    “My take: A new all-time high is in our sights.” “Nice!”

    I learned a valuable lesson backpacking as an adolescent across the the southwestern desert. There often are multiple arroyos, many a football field in length, that one must traverse with a 70-80lb backpack. These dry creeks, or extensive gulches, most often are dry. So, one seemingly has no fear to go down and commence the journey across. My father’s voice halted me in my tracks. “Son, get back up here on higher ground.” As we hiked, Dad had been watching ominous clouds and lightening over the distant mountains. He said, “those are rain clouds … and it’s been raining up there…We’ll sat camp here on high ground.” No sooner had he we taken our packs off and commenced unloading needed gear I heard a roar, turned and saw a wall of water four feet high come tearing through the arroyos. If we had been traversing across those dry gulches at that moment we would have been swept away with our heavy packs. The lesson my dad taught me was not to focus on the dry arroyos in front of us, but to focus miles away in the mountains to see if the skies were clear.

    Folk, there are ominous clouds gathering on the economic landscape and rain is beginning to fall. Those ominous clouds still are in the distance, but the wall of water is coming.

    1
    May 26, 2020
  2. Jerry Doyle said:
    @Joseph Bland: We are not far apart in our respective views of Apple’s performance going forward. I forecast Apple target price of $403 by 04/01/2021. I’m not forecasting markets to tests the 03/23 lows. Markets are putting “hopes” in a V-shape recovery that folk are returning to their previous behavioral patterns and that a vaccine is on the horizon. I’m putting my beliefs in a vaccine coming later than earlier; consumers not rushing back to previous behavioral patterns of consumption; unemployment remains high because not all displaced workers return to their previous jobs; financial & banking institutions face losses from loan mortgages, business failures, credit card debts; businesses forced to revise business plan models to see if they can sustain in a COVID-19 era; negative geo-political events between the USA & China; and other factors.

    Apple sits around $320. That’s $35 from the highest named analyst’s target price of $355. At Apple’s price ascent rate we hit that 12 month target price by mid summer. Apple is poised for a breather. My belief, though, is negative factors of which I denote impact negatively the markets in the coming weeks & months causing Apple’s stock to pull back, not to the previous March lows but a pull back significant to rush in and buy more Apple. Afterwards, Apple starts its methodical march once we are into the Holidays & into the second quarter of 2021 reaching my target price of $403 by end of 2Q 2021.

    0
    May 26, 2020

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