“A popular move being used by hedge-fund traders for what seemed like the entire month of February, and extending into March as well, started to be unwound last week,” Thomas H. Kee Jr. writes for MarketWatch. “The trade was to buy Google and short Apple. This trade was popularized by the media once it became public, and the trade worked quite well until about one week ago.”
“Approximately one week ago we identified a shift in this trade, it also corresponded to technical reversal signals in Apple, and we announced this to our private clients accordingly,” Kee writes. “Since then, the trade does seem to be being unwound, although some are undoubtedly still holding onto the position.”
Kee writes, “The result of the beginning of this unwinding process has given a bid to shares of AAPL, and it has put pressure on shares of Google GOOG -0.40% , which should be expected. The unwinding of the trade means they need to buy AAPL and sell GOOG, the opposite of what they did when they initiated the trade.”
Read more in the full article here.
Goog in bubble territory P/E ratio 25
Only stupid will buy google at this level .
Cool! Quality stuff coming out of Wall Street again.
Looks like exactly the kind of system Apple should be balanced upon.
Disgusting abuse of our economy either way.
Ohhhhhhh. It’s called unwinding.
I betcha that the WS investigators will go to work and concoct some kind of legal ramifacations on traders or shorts if Google falls like Apple did.