Editor's Note

Apple's guidance warning is going to crush the chip sector tomorrow. All of the Apple suppliers and anyone that ever wanted to be a supplier will be punished on Thursday. The Apple guidance warning could have lasting market impact. The company warned of a rapid slowdown in China saying nearly 100% of their revenue miss came from greater China. Sales are crashing. The company now expects to post $84 billion in revenue for Q4 and this is down from their prior guidance just two months ago of $89-$93 billion. Analysts believe it is strange that Apple did not see this coming. Economic events don't tend to occur overnight. They take months to develop.

Some analysts believe that Apple may be using the China slowdown story as cover for their already falling sales. Apple had held firm to its aggressive pricing strategy in China and maintaining the high prices on its top of the line phones. With dozens of smartphones now having more or equal capabilities than the iPhones and some selling for half as much, this could be more of an Apple problem than a China problem. This is going to ripple down through the chip sector as unit expectations plummet

The S&P futures are down -35 as I type this, so we will not be adding a new play for tomorrow.


New positions are only added on Wednesday and Saturday except in special circumstances.


No New Bullish Plays


No New Bearish Plays