Apple's stock has dropped 4%, all the way down to $497 pre-market as Reuters is reporting that the Nikkei is reporting that AAPL has slashed orders for new IPhone displays by 50% as well as other components. Of course, AAPL never comments on rumors and today is a holiday in Japan so no comments from the suppliers either but the MSM is running with the rumor and the thinly-traded AAPL futures are taking a pounding, and dragging the Nasdaq futures down with them and that's dragging down our other indices and giving us a generally crappy open.
Also a very important point made by Forbes is that Q1 2012 was a rare 14 weeks and Q1 2013 has only 13 so AAPL has a 7% handicap out of the gate. We will, of course, be BUYBUYBUYing more AAPL at $500 as there is no news here and perhaps there is a kernal of truth in the rumor (there is in all the good ones) but likely it's related to AAPL selecting another supplier or shifting their focus to the also-rumored new IPhones that also haven't been confirmed yet.
What we can do right now (8:15) is to go long on the Nasdaq Futures (/NQ) off that 2,725 line – as that's where AAPL is bouncing at $500 and makes an easy signal to get out if it doesn't hold. AAPL's 4% drop is a 0.8% drag on the Nasdaq and there's no other reason for the index to be dropping as the other news this weekend has been fairly benign.
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