- Apple is an easy play on AI and consumer discretionary, kind of bundled together, and with that being the case, I think you've got a scenario where we will continue to see buyers jumping in.
- Apple looks like it is trying to rally a little bit during the pre-market trading hours of Tuesday as Wall Street is getting ready for the holidays.
- That's the big takeaway here: despite the fact that the market has pulled back lately, I don't think it changes much.
- Some of this might have been jitters due to Italy fining Apple 98.6 million Euros for allegedly misusing its market power in the App Store. The company does plan to appeal, citing its privacy protections.
But at this point, I think the real factor in the market right now is that we are heading into Christmas. There will be less volume, but let's face it, Apple is a stock that most people hold one way or another, even if it's in their retirement account. It's one of the most widely held stocks by passive investing vehicles and, of course, large funds.
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Recently we have seen a lot of noise, but I think not only does the 50-day EMA offer support, but I think the $260$ level will do the same also. On rallies, I think we're going to try to get to the $280$ level followed by $290$ or so, maybe just a little underneath there, and then so on.
This is a market that's been in an uptrend since August and has been very explosive, adding about 35% since then, and there's nothing on this chart that tells me we are going to change trends. Apple is an easy play on AI and consumer discretionary, kind of bundled together, and with that being the case, I think you've got a scenario where we will continue to see buyers jumping in sooner or later, and dips like this are generally thought of as value.
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