10-06-2018, 12:10 PM
David Einhorn's Greenlight Capital sold its remaining shares of Apple due to its heightened valuation and his growing fear of Chinese retaliation in response to U.S. tariffs, according to the billionaire's third quarter letter to investors. "We ultimately sold because our differentiated thesis from 2011 has become consensus," Einhorn said. "We are somewhat worried about Chinese retaliation against America's trade policies."
Einhorn dumps Apple: Fear of 'Chinese retaliation against' US tariffs
We're surprised not more investors are worried about this. Apple has both substantial operations in China, but the Chinese market is also quite important for them so they can be hit on both sides.
Advanced Micro Devices' hot streak hit a brick wall this week. Its shares were on track for a weekly decline of more than 10 percent on Friday, their worst in a year, and on course to fall into a bear market after having dropped nearly 20 percent from 52-week highs. One chart watcher said more weakness could present an opportunity. "It's got to get a little bit more worked off," said Matt Maley, equity strategist at Miller Tabak, Thursday on CNBC's "Trading Nation." "I like the 50-day moving average on the stock. That should be a good entry point. That provided good support back in both June and July." AMD is still a 7.5 percent drop from its 50-day moving average of $25.55. Its shares dipped below that support line during sell-offs in February and March, but held above it through the summer.
AMD, the hottest stock of the year, just fell into a bear market
We'll keep an eye on AMD.