Tuesday September 9, 2014 – Daily Market Commentary

So today was the long awaited release by Apple of the
iPhone 6. They also unveiled a smartwatch and a
new payment technology for mobile devices.

This was a highly publicized and highly anticipated event.

Makes me think of the classic “Buy the rumor and sell
the news” type of trade.

So, how did Apple perform today?

After opening today at $99.08, Apple was trading slightly
to the bullish side all morning. Then it dropped to a low
of $98.10 and proceeded to run up a high of $103.08.

So that was quick run almost $5 in about a half an hour.

At that point, Apple sold off to a low of $96.14.

After making a $5 run, it promtly sold off almost $7.

What is interesting is that the bull run coincided directly
with the start of the Apple event.

It seems that the unveiling was not well received by
the investors keeping a close eye on it.

This to me is not unusual. But, it certainly seems that
the Apple event also happened to help bring the
overall market down.

I say this because the S & P 500 peaked at 2,000.47
at 1:55 EST. Exactly the same time that Apple peaked
at $103.08.

After the S & P 500 hit it’s high of 2,000.47, it dropped
down to a low of 1,984.61. A drop of 15.86 in the
time that Apple dropped $7.

Looking at a daily chart of Apple, it is setting up for
a high wave candle, where the open is about the same
as the close, assuming it closes around the level it is
now.

So, Apple will end up with a daily range of about $7,
when it’s average range is around $2.

The price action today on Apple did nothing but
frustrate traders trying to capture the intra day moves.

Perhaps “buying the rumor and selling the news” was
the better strategy.

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