Crushed

I told you yesterday I was setting up a "go for broke" scenario this morning and I covered all my shorts, got long some names, and held my Apple (AAPL). While I had predicted that the announcement today would take down the stock, I didn't listen to my own advice and remained heavily invested. What I underestimated was how much this market, nay, this world needed something magical out of Cupertino today. With China collapsing, Europe on it's way out and our government looking like a chicken with it's head cut off, all eyes were on Apple to show us something that we "had to have". Something that would inspire everyone to find a way to get $300 so they could acquire the "must have" phone. That is why when Apple (AAPL) disappointed the whole market began to sell off. I actually already bought some Apple (AAPL) off the news because I told you yesterday, this is an earnings story. They're still going to make $45 next year and at $356 per share, when you back out the $72 in cash per share they have right now, that's has them selling at a 6.3X next years earnings. For a company growing at 20% YOY, this multiple seems pretty low. The biggest danger in the short-term is if one of the 181 hedge funds that holds Apple (AAPL) decides to liquidate it could send the stock down another 20%. When big growth gets hit, it gets hit hard

This is not a recommendation to buy or sell any securities. DAK was long AAPL at time of publication but positions can change at anytime.