Quite The Month
The valuation debate wages on, too. AAPL shares rallied 2.8% on Tuesday, restoring nearly all the 3.5% drop last week (figure 1). Shares shed over 6% for one month through September 2. Keep in mind that showing still outperformed the S&P 500's (SPX) 7% retreat in the same span. Short-term options positioning tracked on TD Ameritrade's thinkorswim® platform shows a 1.7% share move, in either direction, is priced in to AAPL shares as the market awaits today's event. FIGURE 1: APPLE'S YEAR. One-year chart of Apple (AAPL) shares. The stock sits down some 16% from the high hit in the spring. Data source: CBOE. Chart source: TD Ameritrade's thinkorswim® platform. Not a specific recommendation. For illustrative purposes only. Past performance does not guarantee future results.Other Potential Movers
In the same space (sort of), Amazon.com AMZN made news earlier this week on reported plans to release a cheaper $50 tablet with a 6-inch screen, in time for this year's holidays. According to The Wall Street Journal, the release—likely to scrimp on screen quality and battery life—would be one of the least-expensive tablets on the market and half the price of the company's current Fire HD 6-inch tablet. The $50 device is part of a slate Amazon is planning to release this year that will also include tablets with 8-inch and 10-inch screens, according to the WSJ, which cited unnamed people familiar with the rollouts. The content and streaming space is changing for other major participants. Netflix NFLX said this week that it intends to launch its TV and movie streaming services in South Korea, Singapore, Hong Kong, and Taiwan early next year. The news comes after Netflix entered Asia last week by opening in Japan and as it has said it's sniffing out its options in China. By the end of 2016, Netflix has said it wants to be in 200 countries. Stay tuned, Apple muscle can influence much beyond its own share price. But it's also true that a volatility-weary market (figure 2) might appreciate a refocus on company names over global market waves, at least for a short time. FIGURE 2: HOLDING 1900. The S&P 500 (SPX) has held the psychologically important 1900 line so far this month. Data source: Standard & Poor's. Chart source: TD Ameritrade's thinkorswim® platform. For illustrative purposes only. Past performance does not guarantee future results. Good trading, JJ @TDAJJKinahan This piece was originally posted here by JJ Kinahan on September 9, 2015.TD Ameritrade, Inc., member FINRA/SIPC. Commentary provided for educational purposes only. Past performance of a security, strategy, or index is no guarantee of future results or investment success. Inclusion of specific security names in this commentary does not constitute a recommendation from TD Ameritrade to buy, sell, or hold.
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