From the Wall Street Journal's "Stock Futures Wobble Ahead of Economic Data, Earnings" posted early Monday:
Stocks have been jittery in recent days after a flare-up of Covid-19 cases in India and Japan triggered concerns about the pace of the global economic recovery. Money managers’ risk appetite was also jolted by worry that the Biden administration may boost taxes. This week, the corporate earnings season is poised to pick up steam, with the focus on blue-chip companies to report profits and offer guidance that can justify stocks’ high valuations.
Bond investors are also on alert for any change in tone and outlook from the Federal Reserve following a spate of strong U.S. economic data. The 10-year U.S. Treasury yield edged up to 1.577%, from 1.566% on Friday. It had climbed as high as 1.749% at the end of March, but has fallen for four of the past five weeks. Yields drop as prices gain.
"Markets have had a roaring start to the year,” said Hugh Gimber, a strategist at J.P. Morgan Asset Management. “And now there has been this period of consolidation in the bond market, and that’s led to a period of consolidation in the stock market.”
My take: For the past couple weeks, premarket has been where AAPL takes a breather. Only three more trading days before Q2 earnings.
My order is for APR 30 $129/$130 Call Spreads @ 74c. Projected ROI ~33%. This order should fill at ~$134.15 making the Spread $4.xx in the money when bought.
Waiting to confirm AAPL’s trading trend and low for the day caused me to miss the same contract @ 68c. I’m ok with that. Increased confidence is worth the extra expense.
Price-wise, of course, it has been higher, and I’m sure those who bought at those higher prices are disappointed that their investment appears to have been losing ground. Some, I’m sure, are just anxious to break even and cut their losses.
But as we re-climb back to the peak price, folks need to apprise themseleves of why it is that the AAPL rocket took off, why it hasn’t just fallen back into the pit it laboriously crawled out of, and why it was in that pit in the first place.
That’s a history a few here have lived, which is why Apple 3.0 is special. That history instructs us that the forces that undepinned Apple are all still in place. So you that are doubting can take your money and look for another star to hitch to, but fair warning; in our time we’ve seen many who’ve made that decision wish they had just stuck with AAPL. Because make no mistake: Apple is still destined for even greater things
They’ll learn eventually.