Premarket: Apple is red

apple premarket red 10-11-21From Barron’s “Dow Set to Slip, Alibaba Stock and Oil Prices Fly—and What Else Is Happening in the Stock Market Today” posted early Monday:

The stock market was mixed Monday, with Columbus Day in the U.S. likely making for a quiet day of trading, as Alibaba and Chinese tech stocks surged while investors await the beginning of earnings season and key inflation data in the week ahead.

U.S. bond markets are closed for the Columbus Day holiday while the New York Stock Exchange and Nasdaq remain open—but analysts expect much lower volumes Monday and a quiet day ahead. The S&P 500 has seen an average gain of 0.7% on Columbus Days dating back to 1991, compared with a daily average rise of 0.04%.

Investor attention remains focused on familiar themes, such as supply-chain pressures on company profits, a global energy crunch, inflation, and the future of central bank stimulus.

Markets will be able to digest new updates on many of these topics in the week ahead. Earnings season gets under way in earnest in the coming days, and a major inflation indicator—the Consumer Price Index (CPI)—will be released Wednesday along with the latest minutes from the Federal Reserve’s monetary policy committee.

“The week ahead will center around the U.S. CPI release on Wednesday but it might be a touch backward looking given that energy has spiked more recently and that used car prices are again on the march after a late summer fall that will likely be captured in this week’s release,” said Jim Reid, a strategist at Deutsche Bank.

My take: Bullish Williams %R pattern detected, suggesting that Apple may be oversold. Max Pain moved up over the weekend to $145 from $143.

apple premarket red 10-11-21

6 Comments

  1. Hugh Lovell said:
    Would someone please be kind enough to give me a brief definition of “Max Pain.” Thank you.

    1
    October 11, 2021
    • David Drinkwater said:
      Max Pain the price point in a real share asset at which the entire collection of outstanding options that close on that Friday will be most disadvantageous. It is called Max Pain because it inflicts the most financial damage possible on option traders.

      Stocks seem to have a strange tendency to trade toward Max Pain on Friday afternoons. I say “seem”, and I really don’t mean ti imply too much paranoia, but hey, “the house always wins.”

      2
      October 11, 2021
      • David Emery said:
        The 3 laws of economic thermodynamics:
        1. You can’t win.
        2. You can’t break even.
        3. You can’t leave the game…

        3
        October 11, 2021
      • Hugh Lovell said:
        Thank you, David, David & Joseph. I now have a better understanding of Max Pain.

        0
        October 11, 2021
  2. Gregg Thurman said:
    My take: Bullish Williams %R pattern detected, suggesting that Apple may be oversold.

    AAPL RSI, which is a relative measure against the S&P, is 49.90. The potential range of RSI is 0-100 with 50 being neutral. At 49.90 RSI is suggesting neither oversold nor overbought. The points to watch are 30 and 70. An RSI of 30 suggests that equity is oversold, while an RSI of 70 suggests that equity is overbought.

    0
    October 11, 2021

Leave a Reply