PANIC IS IN THE AIR

Some analyst issued a report on Apple today, saying that Apple cut back on its Asian component orders by 10%, due to lackluster Apple 6s sales. Hence, the stock is dropping and everyone is freaking out like it’s the end of the world.

So?

We played out this movie role before, scared investor running in the woods, tripping over Apple cores, trying to escape the boogeyman.

Pardon me if I’m not overly concerned about Apple 6s sales, ahead of what is going to be a huge iPhone 7 rollout.

Moving on.

Stocks are off a bit; but the current is a lot rougher than -30 suggests. Once again, Wall Street is throwing a temper tantrum over the prospect of higher interest rates. Weak balance sheet companies will be affected. It’s not so much the 25 bps raise that has people freaking out. It’s the fact that, once the Fed starts raising, they may not stop. Rates could go back to 1-1.5% over the next year, which would definitely hurt some fucked up companies who are dependent on cheap credit to stay alive.

Short sellers have total control of this market. Look at MNK and VRX bending to the will of Citron, a small website with 28k followers on Twitter. It’s hilarious that they’re breaking numerous hedge funds, in a dark macabre way, over very specious allegations.

“Look at how much they charge for their drugs. Isn’t that nuts?” That’s, in nutshell, Citron’s case against MNK.

Wayfair, ticker W, posted much better than expected results, guided way up, and the stock is screaming lower.

There’s no reason to get worked up about this sordid market action. We are going through a squall, after many years of uninterrupted upside. Eventually, this will pass and speculation will return. For now, panic is in the air.