Sell Apple Now and Get Ready for Foxconn, Marijuana, and Barack Obama: Our Top Stories of the Week
Also, Apple killed yet another perfectly good product while panicking about the holiday season.
Why You Should Sell Apple Now By ChartLabPro.com What a difference a day makes. Today [Novemver 8], our Apple (NASDAQ:AAPL) ChartLabPro.com rating is a Strong Sell (1) on our 1-5 scale. This is an indication you should sell Apple now. This does not mean to short the stock. For readers who have been following us, you should have sold this name at $691 when it hit an approaching overbought level.
Is Foxconn Coming to the United States? Foxconn (TPE:2354) may be opening factories in the US. The Taiwan-based company, also known as the parent company Hon Hai Precision (TPE:2317), has been in the news recently for its reports on the difficulty of producing Apple products, such as the iPhone 5.
According to a DigiTimes report (via AppleInsider), Foxconn is evaluating cities such as Detroit, Michigan, and Los Angeles, California, as possible locations for the factories.
Which States' Budgets Are Benefiting From Medical Marijuana -- And Which Are Missing Out? While marijuana is a controversial product, it's still, well, a product. That means wherever it's legal for medicinal or recreational use, there is money to be made through tax revenue. With several states making big steps forward in the push for legal pot in Tuesday's elections, it's time to evaluate the economic potential of marijuana.
Warning: The Stock Market Panic Button Is About to Be Pushed In October, we published two articles suggesting that there might be a stock market panic in October (see here and here). We were early. Whether the delay in the potential market panic was due to organic reasons, such as the excitement leading up to the November election, or some other factor is beyond the scope of this article. What we do know is that the day after the election the stock market had its worst day since November, 2011.
Tying Up a Tricky Two-Week Stretch for Stocks Following two weeks that have been nothing short of surreal, the stock market-and many of those of us who trade it-are limping toward the weekend.
On Monday, following a dark time on the Eastern Seaboard, we took a look at The Post-Hurricane and Pre-Election Financial Markets. After holding down a fort full of kids with no power or heat, we cast an eye at the Beltway, forecast an Obama win, and noted that the S&P (INDEXSP:.INX) was churning under resistance as the VXO (^VXO) was basing above support, both of which were negative technical patterns.
Bank Of England Acknowledges the Potential Disaster of Central Banks Unwinding QE Asset Purchases This morning, the Bank of England announced that it would transfer the coupon payments it had received from the UK government on its QE purchases back to the government. The goal of this return of money is to pay down the UK's existing debt. Frankly, this is not a new development among central banks and governments around the world (the Fed and Bank of Japan both do this). Some may point to this as monetary financing of governments, which it arguably is, but that's what QE is to begin with.
Google Has Been Blocked in China Just as China, the world's second largest economy, prepares itself for a congressional leadership transition, Web censorship sites are reporting that Google (NASDAQ:GOOG) has been blocked in certain parts of the country. According to an article by the Washington Post, Google and many of its subdomains have been blocked by a "DNS poison." When attempting to access Google, Chinese users are now led to a vacant IP address, making it impossible for them to retrieve search results, access gmail, or check analytics.
Death by Apple: Five Products Killed in the Name of Progress This holiday season comes at a critical time for Apple. With the release of the iPad Mini and the rise of rival tablets like the Google Nexus 7, the Microsoft (NASDAQ:MSFT) Surface RT, and the huge number of e-readers that also compete in the tablet market, Apple is running into some stiff competition for holiday sales. But the company's announcement of the iPad 4 only seven months since the last one seems to indicate that Apple is running scared, following the market that it usually prefers to lead. The announcement also continues a habit of Apple's: a tendency to kill some of its own products.
Can Pfizer's New Drug Clip Abbott's Top-Selling Humira? As the world awaited results from the US presidential election, Pfizer (NYSE:PFE) scored its own victory Tuesday with the approval of a pill that treats rheumatoid arthritis.
With Xeljanz, Pfizer is believed to have a potential blockbuster -- a drug that potentially generates a few billion dollars a year in revenue, according to Wall Street analysts. Speculation by analysts also focuses on how much market share Pfizer can take from existing injected rheumatoid arthritis drugs, including Amgen's (NASDAQ:AMGN) Enbrel, Johnson & Johnson's (NYSE:JNJ) Remicade and the big gorilla, Abbott Laboratories' (NYSE:ABT) Humira.
With the Election Over, Will the Market Break From This Pivot Zone? The election's finally over, so it appears the country will have at least four more years under the reign of the Most Powerful Man in the World -- who is, of course, to Fed Chairman Ben Bernanke. There also may have been a presidential election.
So what does this mean for the market? Well, Obama staying in office suggests no radical changes in the guard, which means the market can likely count on QE-Infinity, and the generally inflationary policies of the past few years, to continue. Barring a massive external deflationary event, this would seem to be bullish for equities over the longer-term.
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