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AAPL likes these linesAAPL has been on an incredible tear. Investors have been dumping money into it over the past few months as its a "safe haven" with its walled garden and customer fanboys yada yada yada along with the Vision Pro hype. This is all conjecture intended to build a narrative. At the end of the day, unlike other tech mega caps, AAPL has not shown signs of revenue recovery or growth from a year ago. What AAPL has done, however, is recently crossed into the sell zone. Apple has grown 25% over the previous 14 weeks with the largest weekly decline in that timeframe being a whopping .6%. As you can see with the 2 pink lines, Apple just crossed over the first resistance line while having its all-time closing high. Given how saturated AAPL and the other megacaps are right now, the market can only go up in one of two ways: 1. Mega caps continue to grow even though many are already pushing extreme P/E multiples (Apple is over 30 now and don't give me any AI / Vision Pro / new ad business - those are narratives to get to a 30x P/E for a $2.8B company, not extend it) 2. Mega caps remain stable while small - mid caps grow Now, there certainly is enough dry powder to enable this second option. But it seems highly unlikely in my opinion. If I am a money manager looking at my returns now and what I expect over the next few years, I don't see a path for Apple adding another $1T in market cap in 3 years (thats only a 10% yoy return, or 5% above the risk-free rate!) when compared to smaller companies. I'm going to start to rotate out some of my well-earned money. This is an important week for the fed with the highest amount of disagreement in the bond market prior to a meeting in some time. I can see one of two scenario playing out for Apple: 1. Reasons that would cause aapl to drop to 160-165: CPI prints high (4.6+) Fed gives the middle finger to the market and raises rates, indicates that more hikes are definitely coming, etc. A general market rotation occurs that sees a profit-taking on mega caps Consumer spending shows (more) signs of slowing (if you're watching, lower economic groups already have increased rates of auto loan delinquencies and higher revolving credit - two typical canaries) More anti-competitiveness lawsuit news in Europe (I maintain that this year Apple will be hit with the news that it must both cut its take rate from 30 to 10%) 1. Apple goes up to 194-196, then goes down to 165-170, this happens if: CPI prints low (comes in as expected, 4.1) or lower None of the above, and it just melts up to 32x P/E until investors think its a good time to cash in the chipe
NASDAQ:AAPLShort
by BullsNBearsEatPigs
FLMD biotechology rising post earningsFLMD had earnings in May with positive earnings beating the expectation of analysts that it would continue to lose quarter after quarter. Investors and traders have reacted with a 80% run-up in the month after those earnings. On the 30-minute chart besides the consistent uptrend with minor corrections, what stands out for me is the increasing volumes relative to volumes before the last earnings report. Off the chart, I find information that insider trading with buying more shares on top of existing holdings leads me to believe that this company expects increasing revenues and sustained earnings.
NASDAQ:LFMDLong
by AwesomeAvani
Harvesting Alpha with Beta HedgingImagine this. Dark skies, earth tremors and thunder roars. Shelter is top priority. Size matters in a crisis. When the tsunami strikes and lightning splits the sky, investors shudder in fear; But the super seven stand tall, shielding investors from the fury. Dramatic metaphors aside, we truly live in unprecedented times. Risk lurks everywhere. List is endless. Unstable geopolitics. Sticky inflation. Recession expectations. Unprecedented deepening of yield curve inversion. Unfinished regional banking crisis. Weak manufacturing. Tightening financial conditions. Extremely divisive global politics, to just name a few. Despite severe headwinds, US equity markets are roaring. YTD, S&P is up +15% and Nasdaq is up +32%. At the start of 2023, the consensus was for US equities to be in doldrums dragged down by recession. Halfway through the year, markets are at the cusp of one of the best first half for US equity markets in twenty years. This is among the narrowest and top-heavy rally ever. Only a sliver of stocks - precisely seven of them - defines this optimism. This paper will refer to these as the Super Sevens. These are the biggest members of the S&P 500 index. Super Sevens are Amazon, Apple, Google, Meta, Microsoft, Nvidia, and Tesla. This paper argues that the Super Sevens will deliver above market returns in the short term as investors seek safe haven from a vast array of macro risks. The paper articulates a case study to demonstrate the use of beta hedging to extract alpha from holding long positions in Super Sevens and hedging them against sharp reversals using CME Micro E-Mini S&P 500 index futures ("CME Micro S&P 500 Futures"). THE RISE AND RISE OF SUPER SEVENS Super Sevens have an outsized impact as S&P 500 is a market weighted index. Merely five of these seven form 25% of the S&P 500 market capitalisation. At $2.9 trillion in market capitalisation, Apple is greater than all of UK’s top 100 listed companies put together. If that were not enough, Apple's market capitalisation alone is greater than the aggregate market capitalisation of all the firms in the Russell 2000 index. Nvidia has been soaring on hopes of AI driven productivity gains. On blow out revenue guidance, it has rallied $640 billion in market cap YTD. That increment alone is larger than the combined market cap of JP Morgan & Bank of America the two largest banks in the US. The heatmap summarises analyst targets & technical signals on pathway for prices ahead: In part 2 of this paper, Mint will cover the detailed analyst price forecasts, technical signals and summary narratives covering value drives and intrinsic risk factors. WHAT DRIVES INVESTOR CONCENTRATION INTO THE SUPER SEVENS? As reported in the Financial Times last week, two broad market trends appear to have fed into this investor concentration. First, Passive investing. When funds merely deliver the performance of an index by replicating its composition, the higher the index weights, the more these passive funds buy into these names. Second, ESG investing. Rising push towards ESG has forced investment into tech and away from carbon-heavy sectors such as energy. Collectively, this has resulted in all types of investors – active, passive, momentum, ESG- all going after the same names. Question is, what happens now? Will the broader market catch up with the Super Sevens? Or will the Super Sevens suffer a sharp pullback? That depends on the broader US economy. Will it have a hard landing, soft landing, or no landing at all? Given market expectations of (a) resilient earnings capacity, and (b) solid growth potential among Super Sevens, we expect that in the near to mid-term the Super Sevens will continue to outperform the broader market. In ordinary times, investors could have simply established long positions in Super Sevens and wait to reap their harvests. However, we live in unprecedented times. WE LIVE IN TRULY UNPRECEDENTED TIMES Risks abound but no signs of it in equity markets. Historically, geopolitical instability, tightening financial conditions, and a deeply inverted curve could have led to crushing returns in the US equity markets. Not this time though. Peak concentration As mentioned earlier, bullishness in equity markets can be vastly attributed to just the Super Sevens. These seven have delivered crushing returns rising between 40% and 192% YTD. The S&P 500 index is market cap weighted. Super Sevens represent the largest companies in the index by market cap and their stellar performance has an outsized impact on the index. Is this a bull run or a bear market clouded by over optimism among Super Sevens? Deeply inverted yield curve In simple words, it costs far more to borrow for the near term (2 year) relative to the borrowing for long term (10-year). The US Treasury yield curves have been inverted for more than a year now. The difference between the 2-Year and 10-Year treasuries is at its widest level since the early 1980s. Inversion in yield curve has historically been a credible signal of recession ahead. When bonds with near term duration yield higher rates than those with longer-dated expiries, this precedes trouble in the economy. Recession. What recession? This period might go into the record books for the most long-awaited recession that is yet to come. For the last 12 months, experts have been calling for recession to show up in 3 months. While manufacturing sector seems feeble, labour market remains solid. Corporate balance sheets are robust. Consumer finances and consumer confidence are in good health. The VIX remains sanguine while the only fear indicator that appears unsettled is the MOVE index which indicates volatility in the bond markets. After having spiked earlier in the year, the MOVE is starting to soften as well. BETA HEDGING FOR PURE ALPHA In times of turbulence, risk management is not an afterthought but a necessity. Hedge delivers the edge. When there are ample arguments to be made for bullish and bearish markets, taking a directional position can be precarious. This paper posits Super Sevens holdings be hedged with CME Micro S&P 500 Futures. Hedging single stocks is nuanced. The stocks and the index do not always move in tandem. A given stock may be more volatile or less volatile relative to the benchmark. Beta is the sensitivity of the stock price relative to a benchmark. Beta is computed from daily returns over a defined historical period. Stocks with high Beta move a lot more than the underlying index. Stocks that move narrowly relative to its underlying benchmark exhibits low Beta. Beta hedging involves adjusting the notional value of a stock price based on its beta. Using beta-adjusted notional, hedging then involves taking an offsetting position in an index derivative contract to match the notional value. TradingView publishes beta values computed based on daily returns over the last 12 months. The following table illustrates the beta-adjusted notional for the Super Sevens based on the last traded prices as of close of market on June 16th. Beta hedging using CME Micro S&P 500 Futures enables investors to precisely scale their portfolio exposures to the index. A small contract size enables investors to manage risks with finer granularity. CME allows conversion of micro futures into a classic E-mini futures position, and vice versa. Round the clock liquidity combined with tight spreads and sizeable open interest across the two front contract months, investors can enter and exit the market at ease. BETA-HEDGED TRADE SET UP In unprecedented times like today, markets may continue to rally or come crashing. To harness pure alpha, this paper posits a spread with long positions in Super Sevens hedged by a short position in CME Micro S&P 500 Futures expiring in September 2023. This trade set-up gains when (a) Super Sevens rise faster than the S&P 500, or (b) Super Sevens suffers drop in value but falls lesser relative to S&P 500, or (c) Super Sevens gain while S&P 500 falls. This trade setup loses when (a) Super Seven falls faster than S&P 500, or (b) S&P 500 rises faster than Super Seven, or (c) S&P 500 rises while Super Sevens pullback Each CME Micro S&P 500 Futures has a multiplier of USD 5. The September contract settled on June 16th at 4453.75 implying a notional value of USD 22,269 (4453.75 * USD 5). Effective beta hedge requires that notional of the hedging trade is equivalent to the beta-adjusted notional value of single stock. Given the beta-adjusted notional value of USD 2,561 for single shares in Super Sevens and the notional value for each lot of CME Micro S&P 500 Futures at USD 22,269, the spread trade requires: a. A long position in 26 shares each across all the Super Sevens translating to a beta-adjusted notional of USD 66,576. b. Hedged by a short position with 3 lots of CME Micro S&P 500 Futures which provides a notional exposure of USD 66,807. The following table illustrates the hypothetical P&L of this spread trade under various scenarios: MARKET DATA CME Real-time Market Data helps identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com DISCLAIMER This case study is for educational purposes only and does not constitute investment recommendations or advice. Nor are they used to promote any specific products, or services. Trading or investment ideas cited here are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management or trading under the market scenarios being discussed. Please read the FULL DISCLAIMER the link to which is provided in our profile description.
NASDAQ:AAPLLong
by mintdotfinance
3
$PINC Punished for Lack of Working Capital?Premier health seems to be flashing some hands off signals at the moment.Based on an analysis of earnings against potential growth, fair value for NASDAQ:PINC would be around $40.38, but the stock is trading 54% below that target. They are even trading below the average analyst target of $33.40. These are signs that something is weighing on the market value of the firm. Potential Issues for Investors Include: 1. Cash to Equity at 4%: This suggests that the company has an insufficient amount of cash to fuel growth and handle liabilities. I would direct investor attention to the company's negative working capital and 20% drop in operating cash flows. 2. Shareholder Dilution: Premier seems to be constantly issuing new shares, which negates any market value that could be had from an increase in earnings. 3. Net Cash Negative: Total debt held by the company is down trailing 12 months, but still leaves the company with -$3.31 net cash per share over that same time period. Key Point: The company is over leveraged amidst tight financial conditions and margins in the healthcare space are dropping like a hot rock. This draws concern as the company has been working with negative working capital for 5 straight years. To mention a few bright spots, the company generating $84 in free cash flow for every $100 in earnings and seems to at least over the past 12 months be looking to reduce their debt. The company is projected to see earnings growth of 5.6% over the next 5 years, but is priced for no growth. Investors who look at this as a mispricing and buy today could see a push toward our forward looking valuations. This could yield as much as a 55% increase in the stock price. On the other hand the key question would be; can the company survive long enough to fix the problems? Investors who believe they will survive can look at this as a reasonable opportunity to buy ahead of any capital appreciation. Earnings are steady over the long term with over 4,400 member hospitals in their circle which should keep the money coming in. Worst case scenario, they become an acquisition target down the line, but in the mean time, I the market is sending signals that hands off is the policy. No growth value is definitely an enticing price point, but maybe a look at next quarter's earnings could provide more insight on the company's direction. PINC faces increased competition from other healthcare improvement companies, such as Optum and UnitedHealth Group. These companies are investing heavily in new technologies and solutions, which could put pressure on PINC's margins. PINC also faces a number of regulatory challenges, such as the implementation of the Affordable Care Act and the rising cost of healthcare. These challenges could make it difficult for PINC to grow its business and maintain its profitability. Income and cash flows have taken a step down in 2023. Cash flows are projected to continue to decline in 2024 and return to growth in 2025.
NASDAQ:PINC
by D1Finance
Tesla will save us from fossil fuel dependencythe title says everything you need to know. without tesla the auto industry would of pushed fossil fueled engined until the supply was gone "crippling the economies reliance". right now we are seeing the aftermath of the covid epidemic and its pressure on us still after 3 years. supply chains have been disrupted globally and now fuel supply shortages are happening right now. there is a massive agricultural demand coming and the supply won't be there to meet the demand. these companies responsible for supply chains need to wake up to whats going on and change for everyone. the profits will come later. right now is the best time to say F it and restructure. Tesla should prepare for HIGH Demand that will innevitably come in 2023. Fuel supply shortage has a massive effect on the global supply chain. War has lasting effects for decades. Food supply shortages causes hunger and labor shortages. Transition or watch supply chains stop. We could be seeing the early days of another global crisis. Tesla is the catylst to fix global supply issues forever. Reliance on fossil fuels would be basically 0. Tesla stock will struggle some until 2023. Watch the fuel markets. When oil starts tanking wait for the recovery and start buying tesla shares. gas prices will skyrocket after oil tanks. could be 10.00 per gallon before EOY 2023
NASDAQ:TSLA
by UnknownUnicorn35774657
DGLY is due for a correctionDigital Ally, has had a bit of a slow motion pump after earnings in mid-May. Insofar as the earnings go, there were none. The news is DGLY is burning cash less than expected. No matter how you cut it shareholder value is not there and still the price went up since then especially in the last few trading sessions. DGLY could dilute shareholders to raise capital. Insiders could be manipulating the price. According to FinTel, there are 12 insiders who own 7.7% of the shares. Seemingly, if they act in a coordinated scheme without any paper trail they could have run the price up especially if they got help with one of the several penny stock trading rooms with lots of followers. Overall, this looks like a pop and drop pumped up and ready to flush. I will take a short trade of put options on this expectant for a quick profit over a week or two.
NASDAQ:DGLYShort
by AwesomeAvani
4
BLDR on a consistent trend higherBLDR is part of the construction industry and has had consistent gains over YTD in the range of 95 % with favorable beats on earnings estimates and increases in revenue. Volume has been rising in the past month. In the past when BLDR pulled back to the blue SMA100 line it then reversed quite well and resumed its move higher. At present, BLDR is on a pullback which provides an opportunity for a long entry at the current price where the SMA20 SMA50 and SMA 100 are converged. I will take a long trade here as I see BLDR to be consistent in its move up and setup for entry with a pullback.
NYSE:BLDRLong
by AwesomeAvani
4
Did you miss NVDA's move? What now?NVDA's gap up on a stellar earnings report should NOT have been a surprise, as the chart has been showing strength since January when I mentioned it in my Morning Reports. It was completing the bottom at that time. The trend upward was showing pro traders in control of price after Dark Pool quiet accumulation. It has 64% of the shares held by institutions, which is normal for a giant-cap stock. It should actually be a Dow 30 component rather than INTC but, alas, that won't happen for a while. NVDA stair-stepped upward. This is probably one of the hardest trendline patterns to see without rectangles drawn around the step, but one of the most important to recognize professional buyer dominance. What now? The gains are now extreme. And the pros are taking profits. That means there is very high risk for buying at this moment. CAN it move higher? Of course! Euphoric retail buying can easily drive prices upward further for a short period of time. Just remember that without institutional buying at this level, any upside from here may be short-lived.
NASDAQ:NVDA
by MarthaStokesCMT-TechniTrader
Inflation will never stop...its time to short inflation 50%Inflation will never stop no matter how much money you make. Right now the cost of living avg is 50% too high for the current wages to keep supporting too much longer. homelessness and families moving in together to survive is already happening. The signs are out there for everyone to see and the government is playing with your lives. When wages increase so does the cost of living. Now the cost of living since the 1950's is too high to maintain in 2022 with current wages and 2023 will be worse. Unsustainable economic breakdown is coming and depression in society is at the highest i have ever seen it in my life time. Fuel shortages, Food shortages, high utility bills, taxes keep going up, government keeps overspending, times are tough for working families. United States Statistics for inflation and cost of living Year Median Home Value Median Rent Household Median Income Gas Prices vary by state this is the avg Avg wage per hour worked 1950 $7,400 $42 $2,990 $0.27 $0.75 1960 $11,900 $71 $4,970 $0.31 $1.15 1970 $17,000 $108 $8,734 $0.36 $1.50 1980 $47,200 $243 $17,710 $1.20 $3.10 1990 $79,100 $447 $29,943 $1.10 $4.25 2000 $119,600 $602 $55,030 $1.40 $5.15 2010 $221,800 $901 $49,445 $2.60 $7.25 2022 $428,700 $1295 - $2495 $78,075 $3.40 to $6.00 $7.25to $16.00 varies by state Federal Minimum Wage Information $5.15 - Sept. 1, 1997 $5.85 - July 24, 2007 $6.55 - July 24, 2008 $7.25 - July 24, 2009 Inflation and supply shortages keeps getting worse. I hear so much everyday from people and this is what people say to me when i ask. I don't make enough money to survive. Bank won't give me a loan. I don't make enough money this year to cover bills. I need things and the store doesn't have it or its too expensive for my budget. power bill too expensive. gas is too expensive. my car has been in shop for months and still not fixed. my bank won't refinance my home. i can't afford groceries because i no longer qualify for government "snap" benifits with my raise at work and i have 4 kids. I am losing my farm to drought and excess cost of fuel and supplies. Automated warehouses put my entire family out of business. several people came forward with police not doing there job while communities are getting robbed while they are at work. the covid epidemic cost me everything my home and my business. my health insurance went up and can no longer afford it. so many people out there struggling to survive and the normal services that help these people have exhausted there funding without any more support for the demand of help. i don't see an end to this economic struggle people are facing and its only going to get worse. Fed rates hikes, the covid pandemic and the countless defaulted loans and ongoing bankruptcies with inflation has banks refusing personal loans and refinancing to alot of people without collateral. All i can say is stick with the job you have and try to manage your finances carefully. resources are stretched thin and customer service everywhere has a high turnover rate with people that don't really know what they are doing. People are taking any job they can to survive and when they lose or find another job they move on and don't really care about the service they are providing. They are basically a third party for the companies and some have reported security violations that resulted in fraud to access individual finances. I'm not writing a book here so i will leave this info here for you reading to digest and research on your own. Maybe a post from you on social media or here with some resources to help others find the help they need. thx for reading
ECONOMICS:USIRYYShort
by UnknownUnicorn35774657
Apple earnings on 5/4/23Apple earnings are on 5/4/23 at 4:30pm. Apple (AAPL) Q2 March 2023 consensus earnings estimate is 1.44 per share on revenue of 92.94 billion. The same quarter a year ago AAPL made 1.54 per share on revenue of 97.28 billion. Q2 March 2023 Consensus: PE = 28.8 EPS = 1.44 Revenue = 92.94 B Apple (AAPL) reported Q1 December 2022 earnings of 1.88 per share on revenue of 117.2 billion. The consensus earnings estimate was 1.93 per share on revenue of 122.1 billion. Revenue fell 5.5% compared to the same quarter a year ago. Q1 December 2022 Results: PE = 25.8 EPS = 1.88 Revenue = 117.2 B Cash = 30.22 B Debt = 99.63 B Assets = 128.78 B Liabilities = 137.29 I'm posting this as a short with a 10% share hedge idea going into earnings. By using a collar strategy to hold 90% of shares and 10% of shares hedged. A collar is often used for downside insurance. Implied volatility often results in IV crush after earnings if the share price does not exceed the options premium. For example: with 1000 shares held, 1 options contract equals 10% or 100 shares. With a wide range collar strategy sell 7/21 expiry 150 call simultaneously buy 7/21 expiry 190 put. The upside / downside, risk : reward = 10% : 20% for this options wide range collar strategy. So essentially, by using the collateral value of 10% shares, it equals 20% downside risk insurance for all 1000 shares for 3 months. If AAPL share price exceeds 170 after earnings, it only takes a +11% upside move to 189 / share of 900 shares to have the same share value as 1000 shares had at 170 / share. *options use 100x leverage you could lose everything* There are many types of options trading strategies and positions, simple to sophisticated & hybrids. I group them into theta, delta or mix strategies and bull, bear or neutral positions. There's a buy side and sell side to every trade. If you check the open interest (OI), you can see how liquid it is. Check how wide the bid vs ask spread is. Theta: iron condor iron fly covered call cash secured put calendar spread collar Delta: call put straddle strangle debit spread credit spread Bull: call put credit spread call debit spread cash secured put Bear: put call credit spread put debit spread covered call Neutral: straddle strangle iron condor iron fly collar (often used for downside insurance) calendar spread (short or long time) Options important variables: Strike = share price itm, atm, otm = strike position Expiry = Date of expiration Value = H, L & Mark Liquidity = bid vs ask spread Direction = put or call OI = open interest V = volume IV = implied volatility Delta = price Theta = time Vega = volatility Gamma = momentum
NASDAQ:AAPLShort
by Options360
20
ALFEN more downside expectedAbove is my technical analysis on ALFEN. ALFEN's earnings showed quite some weakness which made the stock drop quite a bit. Furthermore, it looked like the earnings report was changed quite late since things looked messy and for this reason I expect the drop in earnings to continue throughout this quarter. I assume they noticed that the start of the second querter wasn't any good at all and thus changed their outlook last-minute. For this reason there is a big chance that the stock will drop with it and follow the downtrend shown above. Also, the next earnings might be even worse than expected (i assume so; mainly because of this messy earnings report), bringing ALFEN to even lower points (possibly hitting the third support zone shown). The price just retested the trendline and further downside is expected. This is not financial advice, trade at your own risk and do your own due dilligence!
EURONEXT:ALFENShort
by Mikkel99
2
Is Eaton Attempting a Breakout?Eaton has flirted with record highs, and some traders may be looking for a breakout. The first pattern on today’s chart is the price level around $175 where ETN peaked in late 2021. The industrial stock inched above the peak in March before pulling back. In the process, it made a higher quarterly low (for the fourth straight quarter). That tightening price action could suggest investors are willing to buy at increasingly higher prices. Second, previous dips brought the shares below their 50-day simple moving average (SMA). But this month they managed to bounce at that line – a potential sign of the intermediate-term trend improving. Third, earnings have beaten estimates for the last several quarters. Finally, the 8-day exponential moving average (SMA) crossed above the 21-day EMA about a month ago and has remained there since. That may indicate the shorter-term trend is bullish again. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more. Important Information TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means. This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates. Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com .
NYSE:ETN
by TradeStation
Will Apple be able to update historical maximum? 🍎 Only some 5% remained before the historical maximum. If stock can do this, then Apple will become the world's first $3 trillion company! The NASDAQ:AAPL weight in the SP500 also rose to 7.4% - the highest for any single company in the index since data collection began in 1980! When you watch the Sp500 index go up, it doesn't mean that all stocks go up. Now the US index is pulled by 2-3 stocks that buy back their shares for billions of dollars. In the latest report, apple launched a new buyback to $90 billion and increased its dividend. Fundamentally and technically, the stock is ready to rise to new highs and higher… but I don’t think that will happen and here’s why 📉 1) The main catalyst for growth in recent years is buybacks. Now the US government is actively discussing the taxation of buybacks. Without buying back their own shares, companies will not be able to grow, since EPS will not grow. 2) The company has been declining phone sales for several quarters. Yes, Apple's revenue from phone sales is not the highest share of revenue. But it should be remembered that the entire ecosystem of the company is growing due to new devices. 3) Remember that buying an asset on highs almost never leads to a profit. In the context of economic crisis - it will be very difficult for stocks to grow. FED continues its money withdrawal policy QT - this is bad for all assets. You can find even more profitable ideas in the profile header 🎩 If you are interested in analysis of any other asset - write in the comments and I will do it.
NASDAQ:AAPLShort
by Dorado_Crypto
1
DraftKings goes bull!DKNG just beat earnings! Having picked up a small number of calls as an earnings play based on the underlying financials of the asset, their market dominance, and the strong technicals provided on the chart, it seems evident that DKNG as a company is poised to make a run. Short-term / scalp opportunity: It will likely gap-fade the open first, so I would watch Friday trading hours closely. If the gap-fade happens, traders should look to go long when the fade pattern completes. Call options with 5-10 days expiry in the $22-23-24-25 strike ranges would be an excellent way to leverage this, depending on risk tolerance and position size. Medium-term / swing trade opportunity There is some resistance around the $25 mark, so this is the level to watch. Assuming this level is broken, traders should go long. Aggressive swing-traders could take position as early as today, but more risk-averse traders should look to take position upon break of this level which confirms the pattern illustrated here. Long-term investment opportunity While DKNG does not pay dividends, the chart shows that it is poised to make a significant run. Investors and other long-term traders should look to enter this position as it has the potential to return over 100% on the asset.
NASDAQ:DKNGLong
by Leveraging_P
1