This week's Apple trading strategies (4/25-4/29)

A place for Apple traders and investors to share their best ideas -- Apple's fiscal Q2 2022 earnings week.

To get things rolling, here's Wedbush's Joel Kulina touching briefly on what to expect from Apple on Thursday:

Below: Apple vs. the S&P 500 last week, normalized…

apple trading strategies 4-25-22
Disclosure: Although I am now an Apple shareholder (see Why I bought a share of Apple, my first), I am in no position to give trading advice. Don’t blame me if you drain your IRA doing something you read about here.

See also last week’s trading strategies.

5 Comments

  1. Robert Paul Leitao said:
    With 3-year, 5-year & 10-year time horizons, I see plenty of attractive long-term values available in the market today. In general, I expect multiples to continue to compress as dividend yields inch higher. Microsoft reports Tuesday and Apple reports Thursday. Both enterprises are bellwethers for the market. Patient long-term investors willing to research and take calculated risks are likely to come out ahead two and three years from today.

    1
    April 24, 2022
  2. Robert Paul Leitao said:
    On Thursday Apple will announce March quarter results, June quarter commentary and enhancements to the company’s capital return program. There will be content to support a bull thesis, content for bears to grouse about and more than enough content for long-term investors to justify a “stay the course” approach to Apple.

    0
    April 24, 2022
  3. Robert Paul Leitao said:
    The S&P 500 and the DJIA have retraced to levels last seen 10 months ago. The NASDAQ Composite is at levels first seen in late December 2020. Interest rates are rising and consumers are working off the remainder of their stimulus savings. The pandemic period is over. Fundamentals tempered by rising opportunity costs of investing in equities will set the direction for the market. I’m looking forward to more rational pricing on equities. FOMO has been replaced by fear of buying too early and TINA’s been put on pause in favor of looking at other investment opportunities. In my view, it’s good to have more rational equity pricing and more focus on fundamentals rather than pandemic-driven speculation. Sorry, Netflix. In this post pandemic period consumers have far more choices on ways to invest their time and ways to spend their discretionary dollars.

    2
    April 24, 2022
  4. Fred Stein said:
    Thanks Robert for the insights and new word, TINA, there is no alternative.

    I recently had a debate with an asset allocation advocate (trying to sell his service). Sadly he did not understand that TINA had pushed up all asset classes, which kinda blew up the asset allocation results. The great liquidity expansion created a global TINA. This over-priced all assets, defeating the purpose of diversification or diworsification, i.e. to reduce risk. Apple is already de-risked. And if you don’t sell the market’s moods make no diff.

    0
    April 24, 2022
    • Robert Paul Leitao said:
      Fred: Thank you. Yes. Asset prices across many classes will at best experience disinflation and some asset classes will experience some level of deflation as the Fed not only increases rates but also commences a slow process of QT (quantitative tightening). I’m not worried. I’m also not concerned if multiples in the market continue to moderate and/or contract over the next few/several months. From what I’m reading, professionals are scrambling to develop updated asset allocation models. Personally, I don’t mind a return to more rational asset valuations. As for Apple, I think another big year of share repurchases would serve us well. After this year I’d like to see dividends get more capital return funding. As the share price moves north of $200, the efficacy of repurchases will gradually diminish. I’m not saying cease repurchases (I’d like to see an ongoing program to eliminate share creep and the impact of stock-based compensation) and a planned net reduction of 1% of the fully diluted share count on an annual basis.

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      April 24, 2022

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