China retailers slash iPhone prices after Apple sales warning
SHANGHAI (Reuters) – Several Chinese electronics retailers including Alibaba-backed Suning (002024.SZ) and JD.com (JD.O) have slashed iPhone prices this week, after Apple (AAPL.O) recently blamed poor sales of the smartphone in the country for a rare revenue warning.
The discounting, as steep as $118 for the recently launched 64GB iPhone XR, is the latest sign that Apple’s weak holiday sales in China may have extended to the current quarter.
Interesting setup today in the stock market, beaten down stocks continue to melt higher.
I say “melt higher” because volume continues to decline on the advance. This should lead to profit-taking, and yet lower opens see fresh buying.
The bears are stuck. High probability short sales are no longer here. Which is why I am not calling a new trade today. It’s hard to find a trade that has greater than 1 to 1 risk reward.
I’ll be in cash today. If it’s hard to find, it’s not there.
Can Bears Ignore These Short-Term Opportunities?
There’s something strange about this market: It doesn’t inspire confidence because of all the hurdles ahead, whether it’s global trade, earnings downgrades, Brexit, or Fed policy.
But at the same time, there are signs that point to opportunities.
Looking at yesterday’s price action, investors seemed somewhat disappointed not to get further details about a potential U.S.-China trade deal.