Premarket: Apple is green

apple premarket green 11-29-21From the Wall Street Journal’s “Stock Futures, Oil Rise as Investors Weigh Omicron Variant” posted early Monday:

Oil prices and U.S. stock futures gained, indicating that those markets might recoup some losses from Friday’s selloff as investors monitored the likely implications of a new variant of Covid-19.

“Friday was a panic selloff,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “Traders have had time to sit back and breathe a bit,” she added, saying that trading volumes were lower over the Thanksgiving holiday, likely exacerbating declines.

Investors are awaiting more clarity on the likely transmissibility and severity of the Omicron variant and whether it will weigh on the efficacy of vaccines. Some money managers worry that the new strain could hit global mobility and the economic recovery. Israel has banned foreigners from entry and Japan has said it will close its borders to foreign visitors until more information about Omicron is available. The U.K. has reintroduced mask mandates and PCR tests for travelers.

Others expect that the economic impact of the variant will be limited as vaccine manufacturers update their shots to combat it.

“We know in a situation like this, we know the winds can change very quickly. We can get one piece of news and [the market’s] back to red,” Ms. Ozkardeskaya said.

Charts: Yahoo!Finance sees a bearish RSI (relative strength index) pattern. Max pain is at $155 with a call mountain at $160. Likely to get updated later this morning when TD Ameritrade updates its database.

UPDATE: By 7:15 a.m. Eastern, Apple had jumped more than $1.80, max pain had moved up to $157.50 and the open interest chart had been updated.

apple premarket green 11-29-21

9 Comments

  1. Jerry Doyle said:
    I wrote the comment below last Friday with confidence:

    Jerry Doyle said: “…. What we are seeing this time around is quick, appropriate government response to limit the spread of the new variant. That quick and appropriate government response should have a calming effect on world-wide markets that matters are being addressed expeditiously & competently. Hopefully, the markets will quickly settled down as not to put a crimp into the Santa Claus rally. I’m optimistic that scenario will play out. A little turbulence at first Monday morning and then back to our $170-175 climb into the New Year.”

    I know some of you have much trepidation over a possible significant market reverse. Individuals with margins accounts always should position themselves for that possibility. Having said that caveat, I truly believe we continue in the midst of a viable bull market run pushed along by huge amounts of global liquidity and by pent-up consumer demand (in more than just personal spending) to live their lives. Besides, we learned from 2020 that Apple is a pandemic play for remote work, remote learning, entertainment and continued communicating with family and friends. So, even if worse comes to worse, the Apple ship will navigate the troubled waters with Captain Tim Cook at the helm.

    4
    November 29, 2021
  2. John Konopka said:
    It’s a strange situation. We have the tools to deal with this. Vaccines combined with high quality masks combined with high quality scrubbing of air in indoor spaces combined with widespread testing, contact tracing and quarantines could knock this down quickly. Whether we have the political will and cooperation of everyone is another story.

    2
    November 29, 2021
  3. Robert Paul Leitao said:
    I appreciate Jerry’s thoughtful optimism. I’m taking a more cautious approach. I consider the market forward looking. While the unprecedented levels of stimulus greatly inflated asset prices, the flood of money is inflating consumer goods prices, home values and rental costs, etc. Traditionally, there have been few effective tools other than reducing the liquidity flow through higher interest rates to tamp down inflation. As the opportunity costs of investing in equities rise through higher rates, I expect moderation in equity price expansion. Relative to Apple, the company has exemplary supply chain management as well as strong pricing control. I’d like to see a few quarters of strong profit growth market wide in 2022 before taking a more bullish stance. Of course, I could be wrong. We’ll see. While I do expect Apple to perform comparatively well with the prospect of some multiple expansion, moving the share price significantly higher on a sustained basis does require favorable broad market conditions.

    0
    November 29, 2021

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