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If Apple Fails To Deliver Something 'Sexy,' It Could Drag Down The Entire Market

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If Apple Fails To Deliver Something 'Sexy,' It Could Drag Down The Entire Market
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Apple Inc. (NASDAQ: AAPL)'s much anticipated Sept. 12 product event launch could have broader implications for the entire market, at least according to Boris Schlossberg, managing director of foreign exchange management at BK Asset Management.

If Apple fails to deliver something "sexy" that everyone can get excited about, there's a very strong potential for not only Apple's stock to take a hit but for it to take down the whole market, Schlossberg explained during a recent CNBC "Trading Nation" segment.

Apple is the largest company in the world and holds tremendous weight in various stock indices, Schlossberg noted. On top of dragging down broader indices, a sell-off in Apple's stock could also trigger a lot of momentum selling across the board.

The key to a successful product launch will likely be found in augmented reality features, he said. This has the potential to create "huge enthusiasm" and is a positive indicator for the company's software revenue base.

Bottom line, short-term investors looking to trade Apple's stock could take advantage of a "pretty severe correction" following the presentation. On the other hand, Apple still boasts "a tremendous amount of assets under its umbrella" and the longer-term outlook for the stock will still remain favorable.

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Posted-In: Apple Apple Product Event Boris Schlossberg CNBCPreviews Tech Media Trading Ideas Best of Benzinga

 

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