“Apple Inc.’s big weighting within the Nasdaq is starting to turn heads, especially after a sharp dive in the company’s share price on Tuesday morning created something that looked like a mini flash-crash,” David Berman writes for Seeking Alpha. “Apple, of course, has been growing in size as a technology company, with a massive market capitalization that gives it a 20% weighting within the Nasdaq 100 – a popular benchmark for exchange traded funds.”
Berman writes, “Apple shares plunged 5.5% at the start of trading – and when we say plunge, we mean a straight line down – and dragged down a number of other shares with it, along with the Nasdaq. The scene was reminiscent – if far more tame – of the dramatic dive in stocks in early May, when the Dow Jones industrial average fell about 700 points nearly instantly, before recovering.”
AAPL chart for Tuesday, September 28, 2010:
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MacDailyNews Take: Apple’s massive size may have the additional benefit of making it too visible a target to be safely manipulated. Everyone’s watching now, criminals.