Trader Note

Accept the lack of liquidity at end of session. Size down. Small, quick scalps only.

AAPL & ES

As goes Apple, so goes the S&P. So short ES.

Apple has cut their orders for iphone 8 in half, hitting manufacturers and their share price. The valuation of Apple shares is based upon strong demand for sales. So if Apple is cutting orders, then it is expecting weak sales. This is causing Apple shares to take a hit. It also caused Hang Seng futures to dip by 1.5%.

Apple consists of 3% of the S&P 500, so when it moves the S&P goes with it. Other tech companies will follow Apple lower, too. One the move starts, the HFTs will be bashing prices lower.

In pre-market, PPT is doing a decent job to prevent the market from collapsing. However, most futures traders know to short ES when AAPL is dropping. So as markets continue this move, real trades may out move the BTFD traders.

Normally, I'd take my chop and publish this on the weekend… but I don't know if markets will make the weekend and I am just riding my shorts lower. The only catalyst to a selloff in markets bigger then central bank manipulation is a failure of Apple stock. So, watch the market closely today while enjoying some blood in the streets.

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