Weekending June 21, 2024 207.49 -5.00 (-2.35%)

[CdnPhoto]

A drop of exactly $5, knocking out all the Calls above that point. Same as last week.

Oh well. I'm hoping we have the opportunity to breakout here and climb higher.
Cheers to the longs.

[Dave]

Chinese consumers love AI smartphones but Apple faces localisation challenges, report says

The Canalys report found that 71 per cent of Chinese consumers were willing to pay extra for AI features.
Instead, Apple is likely to adopt domestic large language models - the technology behind generative AI services like ChatGPT - that are approved by the Chinese government, such as Alibaba Group Holding's Tongyi Qianwen or Baidu's Ernie, Canalys said. Alibaba owns the South China Morning Post.

Apple may also need to set up local servers in China for mainland Chinese user data as part of its Private Cloud Compute system, which was launched earlier this month for private AI processing, Canalys said.

Apple's plans to add AI capabilities to its iPhones have received mixed reactions in China, where consumers are unsure about when such features will be available locally, and as cheaper handsets from Chinese brands have been aggressive in integrating AI.

[Dave]

Apple Won’t Roll Out AI Tech In EU Market Over Regulatory Concerns

Bloomberg) -- Apple Inc. is withholding a raft of new technologies from hundreds of millions of consumers in the European Union, citing concerns posed by the bloc’s regulatory attempts to rein in Big Tech.

[CdnPhoto]

Jun 22, 2024 5:52:25 GMT -8 Dave said:

Chinese consumers love AI smartphones but Apple faces localisation challenges, report says

The Canalys report found that 71 per cent of Chinese consumers were willing to pay extra for AI features.
Instead, Apple is likely to adopt domestic large language models - the technology behind generative AI services like ChatGPT - that are approved by the Chinese government, such as Alibaba Group Holding's Tongyi Qianwen or Baidu's Ernie, Canalys said. Alibaba owns the South China Morning Post.

Apple may also need to set up local servers in China for mainland Chinese user data as part of its Private Cloud Compute system, which was launched earlier this month for private AI processing, Canalys said.

Apple's plans to add AI capabilities to its iPhones have received mixed reactions in China, where consumers are unsure about when such features will be available locally, and as cheaper handsets from Chinese brands have been aggressive in integrating AI.

I believe there were reports Apple was talking to Baidu about using their AI.

[hledgard]

Any more info on Baidu would be welcome.

I still think AI is overrated. There is already a great deal of deduction in what Google and Apple do with queries (spelling correction, interpretation options, rewording). Ai adds another dimension, but with the risk of false or misleading outcomes.

As for the attempt in AI to write letters or essays or text, not I. Any of one's own personality, style, or quips -- maybe. But perhaps I need to see more.

On another channel, keeping the market open in China appears to be very important.

[Luckychoices]

Jun 22, 2024 18:54:36 GMT -8 hledgard said:

I still think AI is overrated. There is already a great deal of deduction in what Google and Apple do with queries (spelling correction, interpretation options, rewording).

It's fine that you think AI is overrated...but as you know, the market usually/always reacts before all the facts are in...people invest their money ASAP and take their chances in order to get invested early in *potential* winners.

And, as you're also well aware of, many people believe AAPL/Apple is overrated...but a large number of us hold the stock because we believe otherwise.

Jun 22, 2024 18:54:36 GMT -8 hledgard said:

Ai adds another dimension, but with the risk of false or misleading outcomes.

True...but I'm sure you're aware that there's *already* a tremendous number of false and misleading websites.

[Dave]

Fed’s Key Inflation Gauges May Offer Path to Rate Cuts

Bloomberg) -- The Federal Reserve’s favored inflation yardsticks are poised to show the tamest monthly advances since late last year — a stepping stone for officials to begin lowering interest rates, possibly as soon as September.

Economists expect no change in the May personal consumption expenditures price index and a minimal 0.1% gain in the core measure that excludes food and energy, based on median projections in a Bloomberg survey of economists.

The report, due Friday, is also projected to show 2.6% annual advances in both the overall and core gauges. The expected increase in the core measure, which paints a better picture of underlying inflation, would remain the smallest since March 2021.

Since their last meeting, Fed officials have said that while they’re encouraged by the simmering down in other inflation data — including the consumer price index — they need to see months of such progress before lowering rates.

[4aapl]

Jun 22, 2024 3:54:53 GMT -8 CdnPhoto said:

A drop of exactly $5, knocking out all the Calls above that point. Same as last week.

Oh well. I'm hoping we have the opportunity to breakout here and climb higher.
Cheers to the longs.

Were the options open interest huge?

Stock volume was nearly 4 times the average. It seems like all of that index rebalancing could have happened in the last 10 minutes, and maybe a lot more.

If I had some dividends that didn’t get auto reinvested and wanted them in, I’d be tempted to place a premarket order. I wouldn’t be surprised with that volume pulling the price down on Friday, for the spring to release at open. But that’s a guess just for fun, on a quick 1%.

[CdnPhoto]

Jun 23, 2024 12:06:33 GMT -8 4aapl said:

Were the options open interest huge?

There was a lot at the $210 mark. 36K Puts and 41K Calls. I didn't note the 207.50 calls and puts.

[mark]

One thing that is kind of hilarious is that XLK had to complete their rebalance by Friday, and presumably they did. However, even before the deadline, Nvidia slipped back to third place in market cap again!

Is "had to complete" actually correct? I can't find any definitive info.

They really need to change those ridiculous rebalancing rules. At least apply some hysteresis to the prices so that the rebalance only occurs if there is a persistent change in positioning of top market caps over an entire quarter. Abrupt changes are essentially nonsensical as we've just witnessed. I don't know exactly how they would do it, but maybe something like quarterly average market cap in addition to end market cap, or something similar.

[4aapl]

Jun 23, 2024 18:37:41 GMT -8 mark said:

One thing that is kind of hilarious is that XLK had to complete their rebalance by Friday, and presumably they did. However, even before the deadline, Nvidia slipped back to third place in market cap again!

Is "had to complete" actually correct? I can't find any definitive info.

They really need to change those ridiculous rebalancing rules. At least apply some hysteresis to the prices so that the rebalance only occurs if there is a persistent change in positioning of top market caps over an entire quarter. Abrupt changes are essentially nonsensical as we've just witnessed. I don't know exactly how they would do it, but maybe something like quarterly average market cap in addition to end market cap, or something similar.

I read an article on it. I think it was one of those things that you never really expected to happen and so the wording or thought wasn’t perfect. Something like if the top three or five stocks are more than 50% of the index then adjust the ones that earn at the top, two smaller percentages.

The general idea was not being overly concentrated in the very top stocks if they make up too much of the overall ETF, and so adjust some of their positions lower than the index otherwise would have them.

I forget if it was on quarterly valuations or monthly. Either way there’s some lag time.

I considered playing it for a couple of points. But I didn’t bother.

[Lstream]

Jun 22, 2024 18:54:36 GMT -8 hledgard said:

I still think AI is overrated. There is already a great deal of deduction in what Google and Apple do with queries (spelling correction, interpretation options, rewording). Ai adds another dimension, but with the risk of false or misleading outcomes.

What is your proposed course of action that you think Apple should take, given your ‘overrated” POV?