AAPL makes an all-time high

BY ANDREW GIOVINAZZI

December 15, 2023

Yo Pit Crazies,

If you have not taken a look at Weekly Profits Cycles, do so now so you can learn to enjoy a market near all time highs AND STOP worrying about the lows.

Apple Inc (Ticker: AAPL) is a $3 trillion company. I want to do a Dr Evil impersonation when I say that. Even with revenues decreasing the last year the market bid the stock up 60% from this time last year. Still $100 billion a year in profits is a big number.

AAPL did get close to $200 today and I was ready to invoke my law of big numbers when a stock breaks through a big round number, get ready for it to go higher.

AAPL did not make it and I sold all the calls I had in my Pro and Easy Trade Button products. I am now riding the puts for decent credits. The AAPL fail was part of the reason that the market did this:

Up VIX and up vol is no bueno for stocks normally.

Except here

VIX and SPX are anti-correlated

In general when SPX goes up, VIX should go down and vice versa. That is all I mean by Anti-Correlation. The Fed induced euphoria rallies have upended that situation somewhat. If Fintwit is any guide, the Fed is done hiking unless they screw up and make a mess of the inflation they just tried to tame. The more normal relationship should come back into play and make my Weekly Profits Cycles bring home the bacon more often.

When the relationship gets funky, I usually add some upside SPY calls to the mix for Weekly Profit Cycles, most of which I closed yesterday for some decent gains. I am holding short VIX and short SPY now for almost no chance to lose and 30 days to go. Days like this stretch the rubber band.