Apple
The Department of Justice is expected to sue Apple (AAPL) today for antitrust violations. The case is related to the company blocking competition from accessing hardware and software features of the iPhone.
This isn’t Apple’s first time around with an antitrust suit, but the timing comes as Apple appears to be struggling with new product development and decreasing demand for their devices.
Most recently, the company saw a large decline for iPhone demand in China as competition from Huawei heated up. The fundamental challenges have pressured AAPL stock to losses of 8% for the year.
Today’s weakness against the market comes as the stock is desperately trying to break above its 20-day moving average. This trendline is a great representation of how traders view the stock’s short-term momentum, which is decidedly bearish for Apple since the beginning of the year.
Failure to move above this resistance is likely to push Apple stock back to $165.
Micron
Micron (MU) delivered a massive earnings beat last night, which has the stock trading 18% higher this morning. This stock has been lagging the returns of the semiconductor sector through 2024, but that’s going to change with this report.
Shares ripped through the $100 level to trade as high as $113.50 today, but we’re likely to see a little pullback in the stock over the short term.
Volume on Micron has been high around the earnings report, suggesting that the market may have overreacted to the news.
We’ve also seen the stock break above a key short-term technical measure, the bollinger band.
It’s typical for a stock to see selling pressure after a volume surge and break of that key technical indicator.
I’m expecting Micron shares to pull back to $100-$105 before taking out their $113.50 highs.
Canoo
Will wonders never cease? Shares of Canoo (GOEV) are rallying 28% higher this morning after the announcement that the company’s Oklahoma facility has been approved as a Foreign Trade Zone (FTZ).
The designation helps Canoo eliminate customs duties on vehicles sold overseas. The designation also allows the company to defer customs duties on imported parts for their products sold here in the U.S.
Nick covered the stock a few days ago after it executed a reverse stock split to avoid being delisted on the Nasdaq Exchange. This move, often seen as one of desperation, helped to spark the current rally, which has carried the stock 244% higher in just five days.
Leave this stock for the day traders, as the lighter trading volume will allow the shares to drop almost as quickly as they’ve fallen. To that, the stock is down 72% for the last year, including the 244% rally this week.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.