Following are the reasons why we shorted AAPL , which is considered as one of the most valuable company ever in this industry.
If media starts talking about good things right before earnings? I always take a look into it and see if there's any room for fall. Right before , media talked about 'Apple reportedly planning global rollout for its streaming TV service next year Starting in the US, with a global rollout to more than 100 countries after'. We go opposite. Never trust or even follow the media.
2. Room for fall
October 18 was the brutal month, recorded as the biggest drop monthly since 2011. Well, Nasdaq and S&P fell more than 10%, but apple didn't even fall 10%.
as you can see the chart above, it forms and and started going down.
Fortunately, a day before apple report , samsung elec reported their 3rd quarter report. They reported new record but it was led by semi conductor and chips section, not by mobile. Note 9 sales was okay but provided weak guidance for 4th quarter for flagship model smartphone. Well, iPhone sales couldn't beat expectation even last quarter, now that people even hesitate to buy XS because of expensive price. Not reasonable to think that it will have a surprise number for iphone sales.
S&P resistance was 2731 and they closed near that area today. That means we will enter temporary correction territory. What do we need at this time? apple's miss could be something to drag down.