31.10 - will Apple shares be saved by new products?

Presentation of the new Apple products might shake up American shares.

 

1 apple

With everything that is going on in the world that is simply too little space left in order to watch every move of every big player in the field. And we have to admit that Apple slipped our attention for a while. But that is only because nothing was happening with the company. After their presentation for new three models of iPhones their shares didn’t really have a great performance. Most of the time ever since September shares spent in the red zone due to several selloffs.

But today it is time for us to remember about the company and look at its performance after yet another presentation.

Yesterday Tim Cook – the CEO of Apple revealed fresh products of the company. New MacBook and Mac mini were presented to the public in Brooklyn, New York. But the real matter of interest for us is whether the presentation had an effect for the shares of the company. Because, just as we predicted, new iPhones did nothing in order to support the growth.

In fact, it seems like there were no new phones presented at all. No positive effect was displayed by the stock. No reaction whatsoever. All because it is just another overpriced product that people are going to have to take loans in the bank in order to buy. Something like that is not enough to get traders to trust the stock. And what do we see now?

Recent MacBook model is better, faster and smaller than its 2010 predecessor. But once again we see high prices from the company - $1199 for a laptop. Mac mini in its turn if going to cost $799.

Well, at least these are not phones at these prices. So, did the stock react? Well, yes. The growth is displayed by shares for the first time in almost a week, ever since the selloff hit, Apple failed to restore its strength along with other major American companies. Although at this point it is difficult for us to understand whether the recovery came just because the time for that came or because of the presentation.

The main problem for stock trading at the moment is the risk hunger. Traders have already been filled up in risk through the last month and it is possible that they would seek something more calm and concrete. And performance of American stocks has not been anywhere near satisfactory. That’s is why we haven’t seen the recovery in the sector – traders tent to stay away from it for the most part.

Will Apple be the savior of the whole sector? That is doubtful. With so little trustworthy offers from the company we see no reason why the shares are to become more attractive for traders all of a sudden. It hasn’t offered us anything to work with, so it will go on taking the while sector down with itself.

1. oil

Remember how just in the beginning of the month we were so uplifted with oil prices jumping to the highest level since 2014? It seemed that 4 years of falling and/or turbulent prices were finally behind us and we would be able to move to the future with high process for il once again. But Iranian sanctions and overall decline in the growth of the world economy took its toll on the prices and now we are at a low point once again.

Today’s price for oil is as low as it was two years ago, when recovery wasn’t even a discussion. Today futures for the crude are 9.4 percent lower than they were in the beginning of the month. This selloff and drop and effectively ending 2 months of gains for the crude. Brent lost as much as 10 percent this month.

And us as traders have the USA to thank for the losses the we see today in the field. After all they were the ones who imposed sanctions on Iran. They are the ones who are increasing their stockpile without informing OPEC and they are the ones manipulating the prices. All of the problems to the area are coming from the USA. But why?

We understand when Russia and Saudi Arabia are fighting for the higher oil prices. After all, oil is virtually the only thing that Is supporting Russian economy at the moment. Saudi Arabian main source of income is also oil. but for the United States oil is not a main income resource. That is why it is so easy for the United States to mess with the output and prices for oil. especially given that it is the country that is pioneering electric cars.

But, that is not the only thing that may be the reason for the price jump. Demand for oil is also going down. We might not see it yet, but over the years we definitely started to need less oil. All due to ecology concerns. Again. Markets are not seeing the decreasing demand just yet, but the numbers are falling down.

Right now is the perfect time for us to really see the damages as well as the susceptiveness of oil towards the influence from the outside. It is also a perfect time to foresee the damages that the oil may bare in the future and their source, like the demand problem.

 

Add comment