“The iPhone Event Frenzy: Dumpster Cat’s Tips on Scavenging Profits After Apple’s Big Day”
Apple’s event could lead to a market feast. Dumpster Cat explains how day traders can sniff out the best scraps.
On September 9, apart from the economic indicators like Wholesale Inventories and Consumer Credit, the most significant catalyst is Apple’s iPhone 16 event. Here’s a breakdown of the events and potential market reactions:
Wholesale Inventories (July)
- Dumpster Cat Terms: Warehouses are getting a little more packed with leftovers—slightly more than last time. Not a big deal but indicates a cooling off in consumer spending.
- Market Reaction: A small rise in wholesale inventories usually signals lower consumer demand, which can affect retail and consumer goods stocks. If demand cools, the market may pull back slightly on retail sector stocks.
Day Trading Strategy: Look for short opportunities in large retailers. If consumer demand weakens, they could take a short-term hit.
Swing Trading Strategy: If inventories continue building in the coming weeks, consider longer-term bearish plays in sectors like retail and consumer discretionary.
Apple iPhone 16 Event (Key Catalyst of the Day)
- Dumpster Cat Terms: Apple is rolling out a fresh pile of shiny gadgets, and like the alpha dumpster cat, they’re aiming to grab all the attention in the junkyard. The new iPhone is expected to come with incremental updates, bigger screens, and possibly new buttons.
- Market Reaction: Historically, Apple events have often led to a “buy-the-rumor, sell-the-news” reaction. While excitement builds leading up to the event, the actual product reveal sometimes results in a brief selloff before steady gains resume. However, the long-term trend tends to be bullish if the new product lineup is well-received and pre-orders are strong.
- Market Reaction: Historically, Apple events have often led to a “buy-the-rumor, sell-the-news” reaction. While excitement builds leading up to the event, the actual product reveal sometimes results in a brief selloff before steady gains resume. However, the long-term trend tends to be bullish if the new product lineup is well-received and pre-orders are strong.
Potential Reaction: If the iPhone 16, Apple Watch 10, and AirPods 4 reveal exciting features, Apple stock could challenge its resistance at around $237. However, if the event doesn’t meet the market’s high expectations, we could see a selloff, especially in tech stocks.
Day Trader Strategy:
- Pre-event: Watch Apple and tech sector stocks for momentum leading up to the event. Historically, the stock sees a rise before the launch.
- Post-event: After the event, expect some volatility. If Apple stock drops post-announcement (as is often the case), it could present a quick short opportunity for day traders.
Swing Trader Strategy:
- Hold Off on Major Moves: Wait for the dust to settle after the event. If pre-orders are strong or there are positive consumer reactions to the iPhone 16 and Apple Watch 10, this could fuel a longer-term rally in Apple stock.
- Sector Play: Apple’s success can have ripple effects on other tech stocks and suppliers. Positive feedback could mean a good time to swing trade chip manufacturers or other suppliers to Apple products.
