Did manipulators use Apple stock to cause the markets’ May 6th ‘Flash Crash?’

Supreme Studio Makeover from MacMall.com “I’m fascinated by the rapid decline and complete recovery that took place in less than 15 minutes… on May 6, 2010 coined the ‘flash crash,'” David Waggoner writes for Minyanville.

“Look at market percent of Apple. Apple stock weighs in at 19% of the NASDAQ-100 index. This isn’t an error. Now look at how much Apple dropped on May 6. I show the calculated impact that Apple alone had on the NASDAQ-100 that day. This is more than a red flag; this is a smoking gun. It could very likely be the spark that ignited the fire that brought down the house,” Waggoner writes. “Using ratio analysis on one-minute charts, [I’ll show] that NASDAQ-100 stocks likely led prices down on May 6, 2010. [I’ll then show] how Apple’s extreme market percent of the NASDAQ-100 leveraged into a significant drop in the NASDAQ-100 and probably precipitated the ‘flash crash.'”

“What I’m unable to show is why Apple dropped 23%. The SEC should immediately study the trades of Apple on May 6. If a large trader(s) precipitated the market crash on May 6, Apple was the vehicle,” Waggoner writes. “I think the confluence of economic activity, market forces, and trading functionality thesis should be moved to the back burner, and a market manipulation thesis should be moved to the front-burner in the investigation.”

Full article here.

[Thanks to MacDailyNews Reader “Snow Leopard” for the heads up.]


  1. Accenture stock dropped over 90% – down to a couple of pennies. This places that stock closer to the center of the “fault” than AAPL, which still retained most of its value. The biggest loser – percentage wise – is either THE starting point or close to it.

    MW = usually

  2. I think Bill Gates told Steve Ballmer that he had to sell his Apple stock if he was going to still be Microsoft’s CEO. Then Bill Gates bought all the Apple shares the he got Steve to dump.

    Even Bill Gates knows that Steve Ballmer isn’t the sharpest crayon in the box.

  3. The smartest thing Facebook ever did was not go public.

    Mutual funds, stocks and any worthless paper the banks conjure up are all BS. Pay down your debts and save for retirement later.

    It’s really a shame the banks didn’t collapse. We really need those bastards taken down and the financial system rebuilt.

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