Apple Is Flirting With Disaster 🫣

A Day In Review

Key Inflation Data Is Out 🗝️

Yesterday, everyone waited patiently for the Consumer Price Index to come out. The Street thought we were going to have year-over-year growth of 3.6%, but the numbers came in at 3.7%.

While this wasn’t necessarily good news, how the markets react to such news is really what we as individual investors need to pay attention to. Markets rose modestly, meaning that Wall Street already priced in this expectation and was instead business as usual. This data really didn’t give us much, and we expect markets to remain choppy until we see a clear bullish trend form.

Investors are not so impressed with Apple 🍎

APPL- $174.21 (-1.19%) 

As we know, Apple debuted its new lineup of products earlier this week, and we’ve been keeping an eye on the market reaction. So far in the two days since the event the stock has fallen -2.98%. Now, I don’t want to sound the alarm quite yet but I am being very cautious with them. You see, there is a key support level that has been established at the $174 mark. It was at that price that investors began buying the stock again after the sell-off last month. Going back over a year, it was at this same price point that Apple peaked.

The technicals tell us that this price is important, so I’ll be watching to see if Apple bounces off or crashes through with volume.

What I’m hoping for is a strong next couple of days for Apple to bounce off the support level with at least 150% of average daily volume. The higher the volume, the stronger an indication that this is in fact a significant price for the stock.

Quote of the Day

“Hope should never be in your vocabulary.” It is the worst four-letter word I know. As soon as you say, “Boy, I hope this position comes back,” you should reduce your size.” - Mark D. Cook, Legendary Options Trader

Looking Ahead

Student loans are upon us 😨

44 million borrowers are about to see their student loan payments resume next month. That’s a heck of a lot of people. Now while I know this is not a good situation for a lot of you out there, there may be a silver lining.

How can you take advantage?

Well, with higher monthly payments about to kick in, we expect consumer discretionary stocks to underperform consumer stables. Consulting firm, Bain & Company, forecasts a modest 3% increase in US retail sales during the holiday season. That would mark the lowest sales increase since 2018. And yes, that even includes the Covid years.

Some Fun Stuff

I figured the other sections were dense enough, so here’s your daily meme.