Apple earnings and cash (PLUS: Expect DJIA 21k before 23k?)
Be sure to join me for this week’s Trading With Cody Subscriber Live Q&A in the Chat Room at 2pm ET. If you can’t join us live, you can email your questions to support@tradingwithcody.com and we will get them answered.
Remember my answer the last couple weeks when subscribers kept asking me what to expect for Apple’s stock after earnings?
“I tend to think $AAPL‘s set up into the next iPhone is a case of ‘Fade the Fader’s Fade.’ That is, there seems to be a consensus that expectations are too high and that the stock will sell off on its next earnings report and/or when the next iPhone is finally released. So maybe since the consensus is that the consensus is the consensus is that the consensus is too bullish that we should actually indeed be bullish.”
Bam.
Apple up 6% to new all-time highs at $159 a share, taking the $DJIA above 22,000. In the last six months, the Nasdaq’s up 20%. Is it finally time for the markets to take a break?
There’s a lot of permabears in pain right now. Few investors have been better positioned for these moves over the last six months and six years than we have been and it’s always good to be cautious when that’s the case. Don’t feel like you have to buy something today, even if you’re a brand new subscriber and haven’t owned these stocks for these runs. Emotions are the enemy and perhaps there’s no bigger enemy to the trader/investor than feeling left out.
Feet to fire, I think the DJIA is likely to see 21,000 before 23,000 and I expect we’re about to get to swing at some sweet pitches as prices of some of the new stocks I want to buy and existing stocks I want to nibble on come down to more attractive entry levels.
See you at the chat!
PS. Here are a few ways to put the cash position at Apple into perspective. I compiled these from tweets I saw last night on Scutify’s $AAPL page:
Apple has $261.5 billion in cash.
Apple could buy Uber, Tesla, Netflix, Airbnb, Twitter …and still have $29 billion left.
Apple has enough cash to buy BMW, Mercedes, Ferrari, Porche, and Tesla and still have $80 billion cash left over
Apple could buy all NFL teams 🏈, NBA teams 🏀, MLB teams ⚾️, NHL teams 🏒, and still have $75B.
A quarter of a trillion dollars of cash can buy a lot of companies. Or pay a lot of dividends and fund (stupid) buybacks and pay a lot of bonuses. Probably won’t pay a lot of taxes though. But that’s another topic for another time. See you at the chat!
