Market 2017-12-22 (AAPL, CELG, and more)

Market is quiet with low volume, as many have already started their holiday vacation.

Tax Reform has officially become the law this morning. Congress extends the government shutdown deadline for another 4 weeks.

Apple was ordered to pay $25K each day it fails to produce evidence related to an FTC case against Qualcomm. The fine started December 16. Apple is now also facing multiple class lawsuits for slowing down old iPhones. The company admitted yesterday. I believe they may need to deal with a massive settlement globally. They purposefully slow down customers' iPhones without telling them or giving them a choice.

Winners

BBBY (+4.3%) bounces back strongly. This quick comeback from yesterday's -12% decline is unpredictable. Usually such selloff lasts 2-3 days. BBBY guides FY18 EPS ~$3, indicating P/E ~ 7. This is quite low. However, the sentiment is quite negative according to the reaction after ER.

KR (+2.5%) has a great run after its ER, +40% in 3-month.

QD (+4.2%) still a good day-trade candidate.

Losers

NKE (-2.3%): some investors lost confidence amid the declining trend in North America although Nike is doing very well in Europe and Asia. The market reaction is quite similar to the one following last ER. It was the investor meeting that boosted a +20% run.

CELG (-1.4%): another good chance to buy in early morning when it was traded as low as $102.35. The selloff came in AH yesterday as the company reported a Phase 3 clinical trial evaluating REVLIMID (lenalidomide) plus Biogen's RITUXAN (rituximab) in treatment-naive follicular lymphoma (FL) patients failed to demonstrate a treatment benefit over standard-of-care (SOC) therapy. This shouldn't be a big deal because it is just an label expansion trial. FYI, REVLIMID is CELG's main revenue source (>50%). It brought in $2B in last quarter ($8B a year). I set up buying order @ $100.8 last night, which failed :)

SQ (-2%) affected by the madness in Bitcoin.

My Trades Today

Sold 70% QD @ $13.

Added SQ @ $34.6.

Added GILD @$72.6.

 Merry Christmas to ALL!

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