Every day we’re seeing more evidence that we live in a very interconnected world.  Overnight Apple released a revised earnings guidance letter, which is a fancy way to say “we didn’t sell as many iPhones as we expected.” This apparently caught the entire civilized world by surprise, especially since many folks have lost track of the reality that not everyone can afford a thousand-dollar phone. As a result, Apple stock futures tumbled overnight.  And along the way, they apparently dragged down – foreign currency pairs?

That’s right.  Here’s the overnight chart for the US Dollar-Japanese Yen (USD-JPY) currency pair.

USDJPY

On this chart, down is bad for the US Dollar and good for the Japanese Yen.  So what this says is investors – or at least currency traders – saw the prospect of a decrease in Apple revenue as threatening the value of the US Dollar.

Other currency pairs involving the US Dollar also “flash crashed” including the Australian Dollar and Chinese Yuan. Such a gyration could be expected to drive investors and traders toward safe havens, and it did.   Overnight gold hit a 6-month high and looks to open above yesterday’s close in New York this morning.

Worth noting is this is Apple’s first such downward guidance in 15 years.  Given that this bull market is 9 years on, it’s probably as close to a black swan event as we’re likely to see so close to the holiday season.  Your Gold Enthusiast thinks this will add more concern to investor anxiety, but won’t be enough to push the market over the edge.  For that, we’d probably need poor earnings reports in January, and more angst out of the EU. We’ll have to wait about 6 weeks to see if the first of those shoes drop.

Signed,

The Gold Enthusiast

DISCLAIMER: The author does not trade currency or currency pairs, and so has no positions in those mentioned in this article.  The author is long the gold miners via small positions in NUGT and JNUG, with no plans to trade those in the next 48 hours.

 

—————————————————————————————————

The Greatest Trading Book Ever Written

I have been working very hard to introduce you to the greatest trading book ever written. At my trading firm, the very first thing that any new trader had to do was read this book. They wouldn’t be allowed in my office if this book was not read. Now, I’ve taken this book and built an entire trading system around it. For anyone that has any interest in trading, this is a must-read. It’s about success, failure and then success again. This book is being offered today, Get Your Copy Now

9 "Must Own" Growth Stocks For 2019

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NYSE: DIS | Walt Disney Company (The) Common Stock News, Ratings, and Charts

Disney's (DIS) new live-action film, Aladdin, expected to make $80 million this weekend

The live-action “Aladdin” film starring Will Smith is expected to lead the box office over the Memorial Day holiday weekend.
NYSE: SQ | Square, Inc. Class A Common Stock News, Ratings, and Charts

Is Square (SQ) stock a good buy at this price level?

SQ stock now trades for just $65.
NYSE: F | Ford Motor Company Common Stock News, Ratings, and Charts

Is it possible Ford (F) would buy Tesla (TSLA)

Making a deal work would be a challenge.
NASDAQ: CVCO | Cavco Industries, Inc. News, Ratings, and Charts

Best & Worst Performing Stock Industries for May 24, 2019

Led by ticker CVCO, "Homebuilders" was our best performing stock industry of the day, with a 2.60% gain.
NYSE: EMES | Emerge Energy Services LP Common Units representing Limited Partner Interests News, Ratings, and Charts

Best & Worst Performing Small Cap Stocks for May 24, 2019

EMES leads the way today as the best performing small cap stock, closing up 76.47%.

Read More Stories