Apple helped lift the gloomy moon last week after Powell’s more hawkish pivot in the Press conference where he did not rule out a price hike every FOMC meeting this year! Both Apple’s sales and earnings beat Wall Street projections as the company was able to navigate through computer chip shortages. The companies sales were boosted by sales of iPhone 13, Apple Watch Series 7 and updated Mac’s. Analysts now predict that Apple revenue will top $90 billion. Apple is also approaching a strong seasonal period.

From February 01 to May 09 Apple has risen 13 times in 15 years. The average return has been 14.86% and the largest profit has been 41.59%. Remember that 15% of Nasdaq’s weight comes from Apple shares, 7% of the S&P500’s, and 3.1% of the Dow.

Major Trade Risks:

  • The main risk for this outlook is if the Fed hike rates in a very aggressive way which sees the Nasdaq sell off very quickly.
  • Any negative news for Apple as a company can also impact this outlook.