Why Apple is investing in Apple Inc. (NASDAQ:AAPL)

Why Apple is investing in Apple Inc. (NASDAQ:AAPL)

Why Apple is investing in Apple Inc. (NASDAQ:AAPL)

In the June quarter, Apple suffered through a sales slump, particularly in China, that resulted in a 13 percent drop from last year’s peak revenues and an 8.5% drop in profits. But that compares to the much larger collapse in Samsung Mobile performance—an incredible 41.6% collapse in operating profits—which hit its premium flagship sales so hard that its Mobile IM segment reported profits of just 11% that of Apple. Huawei also suffered through a bleak period of no growth, caused mostly by U.S. policy blocking its sales and partnerships with American companies. 

And while research groups are desperately trying to portray Apple as being troubled due to the volumes of phones it sells compared to all other vendors on earth collectively, Apple’s lock on premium sales to the world’s most affluent buyers is making it vastly more profitable than every other phone company put together. Any comparison of market share that frets over how many phones Apple is selling while ignoring the real value of those phone sales is worthless.

Apple doesn’t have to burn any cash to create the smokescreen impression that it is performing extremely well in a difficult environment. Apple is both building as a manufacturer and retailer, and as a platform vendor, and as a sales organization, and —somewhat invisibly —as a training organization that’s teaching incredible numbers of people worldwide how to use its platforms to build third-party tools for its platforms. 

The executive team with the clearest picture of Apple’s future prospects is actively investing the company’s cash resources as rapidly as effectively possible in the company’s expansion, but the company is simply generating so much cash that it is effectively forced to return the excess to shareholders as efficiently as possible by increasing the value of their investment.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 208.39.

The projected lower bound is: 190.52.

The projected closing price is: 199.46.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 14.0190. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 45.05. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 45 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -120.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 2.040 at 199.040. Volume was 100% below average (consolidating) and Bollinger Bands were 20% narrower than normal.

Open     High      Low     Close     Volume___
195.410 199.560 193.820 199.040 679
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 204.81 198.13 186.20
Volatility: 41 29 40
Volume: 33,951,736 24,980,350 32,846,706

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 6.9% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 3 periods.

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