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Morning Market Briefing – Tuesday- 09/24/2013

The US stock market started this week on a sour note (Dow -49.71 at 15401.38, Nasdaq -9.44 at 3765.29, and S&P -8.07 at 1701.84).  Seven out of the ten sectors ended in red.  Utilities was the only stand out performer and the sector finished the day +1.2%.  The day’s trading volume however was relatively low.

Yesterday was a big day for Apple fanboys.  AAPL finished the day 23.23 higher on news that it had sold over 9 million iPhone 5 in the opening weekend.  As a reference, Apple had sold 5 million during the same period last phone launch.  Personally, I see this as an excellent opportunity to get out of Apple.  What would you rather sell, 5 million phones around $850 each or 9 million phones around $199?  But it’s actually worse than that because an $850 phone was sold at a profit while the $199 was not (said to cost a little over $200 to make).  Sure, I see what Apple is doing; getting their product into people’s hands and hope those folks use it to buy iTunes or whatever.  But it’s only going to be a few days before those people learn that they have been hoodwinked.  You can currently download free music with all the other phones, so why in the world would you want an Apple and have to pay for music (or anything else)?  Either way, when one removes their fanboy Googles (oh, we mean goggles), it’s a sad day for Apple.  They are now selling perception and not substance.

Today the market is opening slightly higher.  The good news out of Europe is that Germany’s Queen Merkel still rules.  We are convinced (not really) that Merkel will lead Europe to recovery!  But as always, I’m sure our politicians in Washington will derail the market with their incompetence.

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