This week’s note will begin by reiterating our bullish theme on the Natural Gas market. We have been clamoring for weeks about both the technical and fundamental backdrop that continues to underpin this Bull Run.
Among those who believe we have shifted into a new political and economic cycle, there is a growing chorus of voices that say the 10-year bull run in equities is heading toward a new direction as well. As such, investors are looking for investments to protect and enhance returns when this cycle ends.
We have a lot to get into and we will start this note off with this week’s big news, which was delivered by Apple. Here are the numbers as reported:
- Q4 EPS: 2.91BN, beating Exp. $2.78
- Revenue: $62.9BN, beating Exp. $61.44 billion
- iPhone sales: 46.9 million, missing Exp. 48.4 million
- iPad sales: 9.8 million, missing Exp. 10.5 million, and down from 10.3 million a year ago
- Mac sales: 5.3 million, beating Exp. 4.9 million, and down from 5.4 million a year ago
- iPhone ASP: $793, up from $618, smashing Exp. $729
- Guidance for holiday quarter revenue: $89-$93billion, with the midline below Wall Street estimates of $92.74 billion (Zerohedge)
Its kind of amazing how at certain points in time, things happen and they tend to be a wake up call – that is if we just open our ears and listen. We have talked at length about our disdain for the likes of the big investment houses and their pitching of zero fee fund management products.
Last week we saw the technology laden NASDAQ market drop over 10% from its prior week high, hitting 6906 down from a high of 7728 a week earlier. We have spoken at length over the last few letters how insiders and institutions have been selling out of technology positions but retail seems to be picking up what they are putting down. This kind of action where the weak hands are buying from the strong hands is a notorious set up for a market set back and last week did not disappoint.