Apple's Guidance Warning Proves That 'Buy The Dip' Still Works: PreMarket Prep Recap For Feb. 18, 2020

Apple Inc. AAPL on Monday night warned that the spread of coronavirus throughout China will prevent the company from hitting its previous revenue targets for the quarter. While that news wasn’t especially surprising considering the economic implications of a widespread contagion, what was surprising was the market’s reaction—or lack thereof.

“This is not shocking at all,” said PreMarket Prep co-host Dennis Dick on Tuesday’s show. “In normal markets, an Apple warning would bring down the entire market significantly especially the tech sector. We are down, so it is doing something, but if we were in normalized markets we’d be down more.”

Shares of Apple began trading at $312 in Tuesday’s pre-market session, down 3.4% from Friday’s close. But by the 9:30 open, the stock was only down 2.5%.

“Logic would say this should sell off. But this market hasn’t traded on logic in a long time. I’m not fighting the buy-the-dippers.”

co-host Joel Elconin cautioned to keep an eye on two numbers that could be key areas from a technical perspective: Tuesday’s pre-market high of $319.74 and Friday’s close $324.94.

To see the full discussion on how the market is reacting to Apple’s guidance warn, click here.

Other Stocks Discussed On The Show

Some of the stocks also discussed include, with technical levels provided by Joel:

Featured Guests

• Franklin Resources, IncBEN and Legg Mason incLM(click here)
• HSBC Holdings plcHSBC (click here)
• Biogen IncBIIB (click here)
• Kroger CoKR (click here)
• Tesla MotorsTSLA (click here)
• Virgin Galactic Holdings IncSPCE(click here)
• Virgin Galactic Holdings IncSPCE (click here)

Eric Krull, Manager and Founder at Krull Asset Management,

Eric Krull has been a full-time trader since 1999 and has managed a hedge fund in the Chicago area since 2013. Prior to that, he was a business management consultant, financial analyst, and project engineer. He earned an MBA from the University of Chicago with a concentration in Investments. Eric develops TradeStation® programs to analyze markets, stocks, and trading strategies. His mentors include William O’Neil, Jim Roppel, Dan Zanger, Mark Minervini, and the other study team members.

Eric’s full interview can be viewed at 36:12 in the video below or by clicking here.

Stephen Ehrlich, Chief Executive Officer, Voyager

Voyager is a team of finance and technology industry veterans dedicated to empowering and servicing investors in the most exciting asset class to date – crypto. Its founders have combined their decades worth of experience from leading organizations like E*TRADE, Uber, TradeIt, Lightspeed Financial and more, to bring you Voyager. Its mission is to provide every investor with a trusted and secure access point to crypto asset trading.

Stephen’s full interview can be viewed at 59:59 in the video below or by clicking here.

Watch the full show or listen to the podcast below.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google Play, Soundcloud, Stitcher and Tunein.

Meet the Hosts:

Dennis Dick
Joel Elconin

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Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.