September 29, 2022, 2:16 pm EDT
Not Just the Apple
Do not blame Apple (AAPL) for its -6% drop in the slide of the stock market: DJIA -666, S&P -104, Nasdaq -408 as of now.
As we mentioned from the beginning of 2022 to the recent global conditions, the bears are in full charge. Apple’s poor selling on its new iPhone 14 simply reflects the fact that consumers are in trouble buying more luxury products.
Not only high inflation and rising rates but geopolitical issues escalate higher on daily basis. For example, yesterday’s breakdown of NordStorm pipelines on both I and II presented serious problems Russia encountered with Ukraine and NATO.
Technically, all major indexes are losing ground near the new low levels of 2022. It opens up the possibility for a major breakdown or new downtrend channels. We have many charts to illustrate the problem since early 2022. Please refer to 09/23 for one of the worst outcomes that Dow Jones could reset to the low of 2020.
The best strategy is to stay conservative on both investment and personal levels. Raise cash level and cut-off unnecessary spending. When economic conditions worsen, there are enough cash reserves to go through the tough time.
It could be the reason that iPhone 14 has difficulty reaching another peak in sales.
