Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Thursday, the 15th of August.
First, Carl Icahn tweeted that Apple shares were "undervalued" and shortly after, George Soros disclosed he was accumulating more shares of Apple, while at the same time dumping his gold ETF shares.
Here we have two Wall Street titans whose average age is 80 years old. You have to love that these two guys are really shaking up the tech world showing traders around the world how it is still possible to trade at their age. Now, I'm sure they don't actually make the trades themselves, but like many traders they have others to pull the trigger. They are both doing a great job and I congratulate them both for showing the world that life begins at 80!
It's also very interesting what is happening in two of the markets that I have talked about before, Herbalife (NYSE:HLF) and JC Penney (NYSE:JCP). Fellow hedge fund manager, Bill Ackman, holds a large short position in Herbalife. Guess who is on the other side of the trade? Mr. Soros and Mr. Icahn. Guess who is losing their shirt on that trade? Hint, it's not the two titans of Wall Street.
The pullback in the general market was not unexpected and I expect to see the market begin to consolidate and trade in a choppy fashion for the balance of August.