Will the iPhone disappointment mark a turning point for US stocks?
S&P 500 opens lower as Apple shares slide
Today is one of those examples when the conventional wisdom held true. One of the most-talked-about trades is to buy Apple shares ahead of an announcement and to sell when the product is launched.
Shares had 7.6% from the start of August to yesterday's open but the lack of new, exciting features led to a 1.2% drop today.
That helped to put the S&P 500 down 2 points to 2494 today.
Still, it's tough to fade stocks here, despite soft September seasonality. The index has just broken out to the upside.
So maybe instead of getting too caught up in the conventional wisdom on Apple-share trading, maybe the thing to do is keep it simple and buy the break. After all, headlines are crossing, citing Mulvaney, that Trump is 'insistent' on a 15% corporate tax rate.