Premarket: Apple is green

From the Wall Street Journal’s “Stock Futures Pause After S&P 500, Nasdaq Hit Records" posted early Monday:

Investor optimism has been bolstered by comments from Federal Reserve Chairman Jerome Powell, in which he used the bulk of his Friday speech to explain why he is still confident that this year’s inflation surge would prove temporary. Disrupted supply chains, temporary shortages and a rebound in travel have pushed inflation to its highest readings in decades.

Money managers have worried that prolonged inflationary pressures could eat into corporate earnings if businesses cannot pass higher costs on to customers, and could cause the Fed to accelerate interest rate rises.

A rise in interest rates—or expectations that the Fed might need to tighten policy—could cause Treasury yields to rally, said Lars Skovgaard Andersen, investment strategist at Danske Bank Wealth Management. A fast rise in yields could put pressure on large technology stocks that have done well in a low-yield environment, weighing on broader markets.

“The pace of how fast equities have moved makes me cautious,” he said. “An upward pressure in yields could spook a summer market.”

My take: Yahoo! sees a bullish chart pattern (commodity channel index), but MaxPain points to a Friday close of 147.

6 Comments

  1. Gregg Thurman said:
    MaxPain points to a Friday close of 147.

    Which is consistent with my historic chart, a brief rally on Monday followed by a selloff.

    0
    August 30, 2021
  2. Bart Yee said:
    @ 11:50 PDT, Apple up 4:28, 2.88% to $152.85. This is off a new intraday high today of $153.49.

    If Gregg is right, I don’t mind a 2-3% rally followed by a gradual downslope. We’ll head to just see whether Apple gains any support above $150 or not.

    0
    August 30, 2021

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