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Post by duckpins on Jan 28, 2021 12:59:32 GMT -8
Note about earnings. Last earning two stocks I follow, beloved Apple and OLED, beloved technology that enables comfortable clear viewing, both had great earnings reports and both sold off. Then after a few weeks rose to new highs. People who chart the Max pain might have insight into this. Remember also these Hedgies who are short the stocks the wallstreetbeats guys are hyping are leveraged. We don't know the extent of that. Wallstreet was leveraged 70-1 and more at the time of the Greenspan Republican 2nd depression. Think how much of their Apple stock they have to sell to cover their losses at 100-1? To buy back million dollars worth of one of the crazy stocks they have to sell 100 million worth of Apple. This is where the crash gains momentum as Apple goes down, now they have to sell more of it. Margin calls on the hedge funds created the perfect storm along with the curious fact that all the stock was shorted so they could no longer even do that. The other issue is call buying which forces market makers to buy 100 shares at any given price to cover out of the money calls. A better way is to buy puts but not as lucrative to the movers and shakers, just safer. You know you lost only the amount you bought.
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JDSoCal
Member
Aspiring oligarch
Posts: 4,182
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Post by JDSoCal on Jan 28, 2021 13:36:40 GMT -8
Yes jd, i agreed with the first three words in your post but I didn’t realize billionaires were irrelevant when it comes to their opinions on the economy and the markets.
Strange bedfellows!
Meanwhile, Elizabeth Warren was on CNBC touting her wealth tax. Might want to take profits before that passes!
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Post by silkstone on Jan 28, 2021 13:58:26 GMT -8
JD, I’m only defending his opinion. Yep, I sold a bunch, now get back to class.
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SomeJuan
Member
Taking a nap…
Posts: 321
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Post by SomeJuan on Jan 28, 2021 14:13:22 GMT -8
The uptake of this quarter, will only be replaced in the next quarter, by miles.
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SomeJuan
Member
Taking a nap…
Posts: 321
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Post by SomeJuan on Jan 28, 2021 14:31:33 GMT -8
Apple is delivering my iPhone 12 pro , 512 gig today, and my iWatch 6 product Red
I am doing my part...
The MacBook Pro is still Feb 5th, plus
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4aapl
Moderator
Posts: 3,632
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Post by 4aapl on Jan 28, 2021 17:11:30 GMT -8
Crazy week.
We're having a hard time keeping track of what day it is. Snow shut down school and roads, but the ski resort was hopping. Hard to remember that it's the middle of the week.
Even $100M pulled only from AAPL would only be around 1/200th of what traded today.
We're flat on the 5 day chart. But looking back almost 2 weeks, the stock was hitting just below $127 back on the 15th and then Tuesday the 19th. I thought about buying at $126 or so. Even with today's dip, the stock is up $10 in those 8 trading days.
Sometimes I wish the analysts would space out their post-earnings upgrades. Sounds like a lot of them reaffirmed or upgraded today. If the market holds for at least 6-9 months, the $150 and even $170 targets should be hit.
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Post by archibaldtuttle on Jan 28, 2021 19:32:49 GMT -8
Looking at the futures down big tonight I think it’s clear that there’s been a snowball / contagion factor related to these small cap short squeezes. It’s not aapl specific but it is affecting aapl and the whole market.
Big traders are all highly leveraged and when unexpected risk comes at them, they reduce their margin exposure. They are selling equity exposure to raise cash this week. Do a google news search for “degrossing” and you’ll see stories from Bloomberg and WSJ from the last 24 hours showing how the unexpected turmoil to a few hedge funds has them all skittish and trying to get out of the market at once.
Could this blow over in a week? Sure. But it could also be a new normal where even blue chip stocks like aapl get valued at a slightly less inflated PE because there’s less money sloshing around in the system. Maybe instead of a 37-40 PE it only gets a 30 PE... I don’t have to tell you what that would mean for our favorite fruit company
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