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Stocks Can Hold Up On Apple's Guide Down

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Here's some of the notes we told subscribers today. They receive this and other reports daily on tech, trading and markets including our world ranked stock picks and timing calls. To see our full comments along with specific stock picks click here.

Apple just guided the quarter lower than previous expectations citing lack of supply and demand in China. Supply is coming back up but slower than expected.

We've heard from other producers that they've seen minimal China hit.

With the China outbreak known for a couple of months and stocks going up anyway, I would guess this type of news was expected.

Still I want to see how stocks trade.

The market is extended but not sure that matters with the Fed planning to buy $60B a month in QE plus a reducing amount of Repo support. That QE amount is as much as they bought in the heyday of QE. This time the economy and jobs are much stronger making this a special time for markets; strong economy and Fed support. Usually the Fed only suppo…

Stock Market: Continued China Risk With Hedge Funds Maxed Out

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Here's some of the notes we told subscribers today. They receive this and other reports daily on tech, trading and markets including our world ranked stock picks and timing calls. To see our full comments along with specific stock picks click here.

If you read our work last week you weren't surprised by the weakness markets saw this week.

Last week we said we wanted to be "pretty hedged" and to "have stops." The combination of hedge funds maxed on buying and China's health concerns were the opposite direction everybody's leaning.

There was a record day-to-day jump in the China health cases spreading on Saturday. This problem has yet to peak out.

The Fed bought a ton on Friday as an offset but it won't be enough with the China concerns.

Think about it. Think about how many bulls are in the market that don't want to let go of their positions yet we have a major health and economic impact in China and Asia.

Why are people so bullish coming into…

Stock Market: China Risk and Hedge Funds Maxed Out

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Here's some of the notes we told subscribers today. They receive this and other reports daily on tech, trading and markets including stock picks and timing calls. To see our full comments along with specific stock picks click here.

We managed to be pretty hedged on Friday in our model portfolio. We'll have to see what this follow through is from China.

What's holding up the market is the barrage of Fed buying which we're tracking daily.

The repo market volatility and follow-on Fed support is likely in response to too many hedge funds using the repo market to fund their leverage. This is a problem, but I think only a problem when the Fed stops supporting this market.

Hedge funds were caught off guard in September and had no choice but to bid up the market when funds dried up. They had been getting funds at very low rates to fund their leveraged portfolios and then had no way to fund their portfolio when there was nobody on the other side to lend to them. Either they nee…

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