Did Apple stock today suffer its own personal mini flash crash?

“Shares in Apple Computer experienced two sharp downward spikes today,” Mike Taylor reports for The New York Observer.

“The bearish Fight Club enthusiasts at Zero Hedge think Apple has experienced two mini flash crashes in one day,” Taylor reports. “Former tech CEO Karl Denninger, blogging for Seeking Alpha, sees today’s Apple action as an indication that the market is too dangerous for the retail investor: ‘Folks, this sort of crap is totally out of hand. And it’s now a daily game that’s being played by the machines, which are the only things that can react with this sort of speed, and they’re guaranteed to screw you, the average investor or trader.'”

“Meanwhile, Dow Jones Newswires attributes the move to rumors that chief operating officer and Steve Jobs’ No. 2 man Tim Cook is leaving for Hewlett-Packard. (Cook has denied that he’s leaving.) …The Financial Times takes a balanced approach, but also stops to note that viewed over 10 days, Apple’s spike downward looks much more severe than it does no the intraday chart,” Taylor reports. “Plus, there were weird spikes in other tech stocks — Research in Motion, IBM, Dell, General Electric, Oracle, Microsoft and the aforementioned Hewlett-Packard.”

Taylor reports, “Whoever’s right, and it could very well be nobody, we can be confident of one thing: Even to seasoned market observers, sudden price moves in stocks don’t always have explanations that are immediately obvious. Careful out there!”

Full article here.

MacDailyNews Take: One thing’s for sure: The morons at the SEC will be the last ones to figure out what’s going on.

44 Comments

  1. There is a new generation of trading technology the SEC would rather not try to define. But highly-complicated, program trading signals combined with hyper-trading in nano seconds, is likely implicit in these new flash events. I doubt anyone at the SEC or even the brokerage upper management truly understand how it all works, perhaps not even he young techno-PhDs on staff who design these programs. What they do know is they are making money.

    For the average investor, ignore brokers, newsletters, and CNBC. Find companies that analysts and other investors have misunderstood, where there is a gap between perception and reality, and just buy and hold, or short and hold.

  2. There is a new generation of trading technology the SEC would rather not try to define. But highly-complicated, program trading signals combined with hyper-trading in nano seconds, is likely implicit in these new flash events. I doubt anyone at the SEC or even the brokerage upper management truly understand how it all works, perhaps not even he young techno-PhDs on staff who design these programs. What they do know is they are making money.

    For the average investor, ignore brokers, newsletters, and CNBC. Find companies that analysts and other investors have misunderstood, where there is a gap between perception and reality, and just buy and hold, or short and hold.

  3. Today, had nothing to do with a high beta. The price swing was virtually uncorrelated to the broader market. It was high volume of sell orders at the open that did it. Just end of quarter profit taking.

  4. Today, had nothing to do with a high beta. The price swing was virtually uncorrelated to the broader market. It was high volume of sell orders at the open that did it. Just end of quarter profit taking.

  5. Since this is, so far, a relatively quiet thread, with ChrissyOne mostly talking crazy stuff to herself, I’ll take advantage of this to beg you MDN, please don’t give that Farhad Manjoo’s another attempt at garbage writing a thread here.

    Thank you, you may now make this post vanish.

  6. Since this is, so far, a relatively quiet thread, with ChrissyOne mostly talking crazy stuff to herself, I’ll take advantage of this to beg you MDN, please don’t give that Farhad Manjoo’s another attempt at garbage writing a thread here.

    Thank you, you may now make this post vanish.

  7. How many times have we experienced this scenario in the history of Apple? Grit your teeth, buy some more stock and hang on for a wild ride with many more mountain peaks than valleys.

  8. How many times have we experienced this scenario in the history of Apple? Grit your teeth, buy some more stock and hang on for a wild ride with many more mountain peaks than valleys.

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