The Story of Three A's - Apple, Amazon and Alphabet

Hello MarketClub members everywhere. Well, we are at the beginning of a new week on a rather unusual day when we have three sixes in the date, that's not going to happen again until the 26th or until we hit 2026. That occurrence aside, I want to take a look at all the markets and in particular, the three A's

MarketClub's Mid-day Market Report

Let's begin by looking at Apple: Continue reading "The Story of Three A's - Apple, Amazon and Alphabet"

Did Warren Buffett Get It Wrong With Apple?

Hello MarketClub members everywhere. After years of avoiding tech stocks and missing the tech boom, legendary investor Warren Buffett purchased through Berkshire Hathaway 9.8 million shares of Apple on May 16th, worth roughly $1.07 billion, according to a filing for the first quarter with the Securities and Exchange Commission.

What's interesting here is hedge fund giant, David Tepper, exited his 1.2 million stake in Apple and in April, Carl Icahn said he no longer holds any shares in Apple.

MarketClub's Mid-day Market Report

So who is right? David Tepper and Carl Icahn for selling their shares of Apple Inc. (NASDAQ:AAPL) Or Warren Buffett for buying the stock? Well, it all begins with your time perspective. In the case of David Tepper and Carl Icahn, they tend to be traders as opposed to Mr. Buffett, who tends to be a long-term investor. Now I can say this about Mr. Buffett; he is not a tech guy and he missed out on the big move in all of the tech stocks. So if you are a long-term investor, it may not be a bad move to buy Apple. If you're more of a trader, then you probably want to be out of the stock of the moment.

Here is my take on Apple. Continue reading "Did Warren Buffett Get It Wrong With Apple?"

Is Apple About To Buy Netflix?

Hello MarketClub members everywhere. The buzz around Wall Street this morning is that Apple is going to buy Netflix. As you probably know, Apple has a huge cash hoard rumored to be somewhere around the $200 billion level. Netflix is worth perhaps 40 or $50 billion, so it doesn't take a lot of imagination to see how a deal like this could work. Apple wants to move into the content and distribution space and Netflix might just be the vehicle to do that.

MarketClub's Mid-day Market Report

Apple Inc. (NASDAQ:AAPL): Here is the rundown on Apple, several days ago Warren Buffett purchased Apple stock as he thought it was undervalued. Based on the Trade Triangles I'm on the sidelines in having taken a small loss of $3.39. Technically the $104 level should present a major barrier for Apple. One thing to remember, this is only a rumor and it is not supported by a strong technical picture. The biggest concern I have is the current lack of innovation by the company. In my opinion, without innovation a tech company like Apple is going to have a hard go of it. Continue reading "Is Apple About To Buy Netflix?"

Stocks Struggle To Find Direction

Hello MarketClub members everywhere. As we start the week, it looks as if the market is still trying to digest what the Federal Reserve said in its meeting minutes last week. All eyes will be on the housing, PMI and wage numbers due this week as well as commentary for the regional Fed Chiefs. The Regional Fed chiefs for St. Louis, San Francisco, and Philadelphia are due to speak Monday, while Chair Janet Yellen is due to deliver remarks on Friday.

MarketClub's Mid-day Market Report

The big mover of the day is Apple Inc. (NASDAQ:AAPL). It's jumped over 1.5% on rumors of large iPhone 7 orders and after Taiwan's Economic Daily News reported that the iPhone maker has asked suppliers to prepare production for a new version of its smartphones.

Key levels to watch this week: Continue reading "Stocks Struggle To Find Direction"

One Of These Markets Is Going Down Big Time

Hello MarketClub members everywhere! Not sure if you live in the rain soaked mid-Atlantic states, but enough already with the rain! It is depressing. The reason I bring this up is the erratic and somewhat depressing action in the stock market.

On Tuesday we watched a massive rally in stocks and everyone was singing happy days are here again. Yesterday, reality and gravity came into the market and took away practically all of Tuesday's gains.

As I said on Monday when I talked about "The Next Big Swing", I believe that the markets are putting in a major top as both the S&P 500 and the NASDAQ have all flashed red weekly Trade Triangles indicating to be out of the market and on the sidelines.

Apple Inc. (NASDAQ:AAPL)
So sad about Apple, here is a stock that was the "apple of every investors' eye" and now this once super stock is now in the dumpster. The question is, with all the Trade Triangles red and pointed lower for Apple, is it just a false signal or is this really the start of a bigger problem? I believe that Apple has some serious hurdles ahead and as the weeks and months pass these problems will come to the forefront.

The biggest problem for Apple right now is that it is not seen as an innovative growth company. Can anyone say "Nokia" and not wonder what happened to this once-leader in the mobile phone market? The next problem Apple has, and this could well be its number one problem, is perception. Apple is just not perceived as a "cool" company anymore. Apple's third problem is expanding its market for its cash cow iPhone. It very much looks like China wants to put the kibosh on any further Apple iPhone sales as they really want to sell their own smart phones (so much for free trade).

The next big psychological level for Apple is $90.00. Once we see around $89, you will see many more investors throw in the towel. On Thursday the 28th of April, Carl Icahn stated on CNBC that he no longer owned any Apple stock. MarketClub's Trade Triangles exited Apple six days earlier at $104.88. I am guessing Mr. Icahn exited around the same time before he made his big announcement on CNBC.

Daily Chart of Apple Inc. (NSDAQ:AAPL)

Continue reading "One Of These Markets Is Going Down Big Time"