Premarket: Apple is green

apple premarket green 9-22-21From the Wall Street Journal’s “Stock Futures Rise as Evergrande Contagion Fears Ease” posted early Tuesday:

U.S. stock futures rose as concerns over giant property developer China Evergrande Group eased and investors awaited a policy update from the Federal Reserve…

China’s Shanghai Composite reopened after a holiday to muted gains, closing up 0.4%. Markets in Hong Kong were closed for a holiday Wednesday. Hong Kong’s Hang Seng Index sold off earlier this week alongside broader markets as investors feared that defaults from one of China’s biggest developers could create contagion risks in the broader market.

An onshore unit of Evergrande said Wednesday it would make an interest payment on time this week, though the debt-ridden conglomerate is seen missing a separate payment due on dollar bonds. Investors expect the Chinese government will step in to stave off ripple effects that could affect the country’s growth and weigh on the global economic recovery.

“We don’t know yet what that attempt to limit contagion is going to be, but the market does expect that Beijing will act,” said Susannah Streeter, senior investment and markets analyst at U.K. asset manager and stockbroker Hargreaves Lansdown.

My take: Yahoo! Finance sees a Neutral “gap down” pattern for Apple and max pain shows $146.

3 Comments

  1. Gregg Thurman said:
    With AAPL now trading above $145 Monday’s wild Willy seems to be behind us. My SEP 24 $139/$140 Call Spreads appear to be safely in the money.

    1
    September 22, 2021
  2. Gregg Thurman said:
    With an RSI of 30.98 AAPL is officially oversold and may be responsible for today’s very positive move.

    1
    September 22, 2021

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