Here’s why AAPL likely bottoms next week

Note: As I am traveling tomorrow, there will be no report, thank you for your understanding.

US Stock indices remain churning near the June lows, and haven’t shown sufficient signs of bottoming, nor rallying to have a meaningful view of direction on a 1-2 day basis.   One can certainly make the call for a possible Friday bounce on better-than-expected economic data with the all-important PCE Deflator coming out.   However, it remains my conviction that next week is more important than Friday for stocks to put in a low.  Thus, any rally to SPX 3750-3800 should be a chance to hedge for a move back down to 3600 and marginally below. Both Treasury Yields and the US Dollar should likely make a final stab at highs which would satisfy both Elliott-wave counts and DeMark exhaustion before possibly rolling over as Equities bottom right after Yom Kippur.  As explained in later pages, Technology has actually performed better than might have been expected this past week which has helped Growth hold up during a very volatile time.  This looks to be important, and I continue to believe that October approaching should be a time when many various asset classes experience a change in trend, with Equities and Treasuries turning higher (Yields fall) while the US Dollar takes a reprieve from its parabolic rally.  The risk/reward should be favorable for Bulls to buy dips on declines into next week.

Why AAPL’s decline isn’t too meaningful

checkout-thomas-lee image
checkout-logo image

Become a Member To Access Fundstrat Research

Fundstrat Direct gives individual investors access to Tom Lee's research, previously only available to banks and hedge funds.

Monthly

$199/mo

First Month Free

Join Now

Annual

-15% $2,028/yr

List Price $2,388

Savings: $360/yr

Join Now

Why Join Fundstrat Direct?

Fundstrat Direct helps you invest confidently with the same research banks and hedge funds use to navigate the market.

Daily Strategy Icon

Daily Strategy from Tom Lee & Team

Stay ahead of consensus with daily updates on key developments & catalysts and opportunities ahead.

Real-Time Market Alerts Icon

Real-Time Market Alerts

Analysis on market-moving events and actionable opportunities delivered instantly from us to you.

Curated Stock Lists Icon

Curated Stock Lists

Choose the portfolio that best suits your investment style, preferred asset class, and time horizon.

Monthly Market Update & Top Ideas Webinar Icon

Monthly Market Update & Top Ideas Webinar

Attend engaging webinars with Tom & team featuring our top ideas and near-term market outlook.

Daily Technical Strategy Icon

Daily Technical Strategy

Receive tactical opportunities, actionable signals, and fundamental analysis from our proven research team.

Live Analysis on Your Holdings Icon

Live Analysis on Your Holdings

A monthly webinar featuring live analysis on member-submitted stocks and questions.

Disclosures (show)

Events

Trending tickers in our research