The big weakness in AAPL stock last week (and possibly the weakness today and part of this week) was a result of a major levered ETF unwind which was forced due to a dynamic change in margin requirements for those instruments. That unwind could still be happening in part through the end of this week (today) though I think the bulk was done by the end of last week. In turn, that unwind also served as the catalyst to push AAPL below a key MA (the 50 day) -- thus fueling more weakness. In short, let's call this a liquidity trade that has created a technical trade....
Further, we have seen no firm "good" news out of China. The market was expecting an instant smash. That hasn't happened so far, but the fact you have a couple million iPhones already in China floating around tells me when the features and price for "legit" iPhones finally connect, that market is going to be huge. And by the time we start seeing big sales numbers posted out of China, I'm not sure you'll be able to buy AAPL south of $235....
I've long seen the iPhone as a platform (not a product) and that platform will have a commanding, possibly leading market share presence for the whole cell phone category before this is all said and done. I see nothing currently to think my expectations for a further 50% or so rise in the stock price needs to be changed....
long AAPL
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