What’s behind Apple stock’s unusual activity?

“Just as Apple reached its lowest point in almost seven months, the stock bounced back Tuesday,” Michelle Fox reports for CNBC. “If the stock has been struggling for so long, why are the shares rallying now?”

“According to [Jim] Cramer, it’s more than just the rumor about Apple’s iPhone 5 possibly coming out in August,” Fox reports. “‘When we see stocks bounce that’s usually because the people who have been playing the trend recognize that there are some buyers at a certain level,’ he said, ‘and then the trend followers who have been shorting… realize they have to cover.'”

Fox reports, “But just because there is a bounce today doesn’t necessarily mean the stock is heading higher long term, the “Mad Money” host cautioned. ‘One of the things that we kind of forget: stocks don’t go down in a straight line,’ he said. ‘The velocity of the Apple sell-off would take Apple to $200 in August. That’s not what happens, that’s not the way stocks trade.'”

Full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

13 Comments

  1. Here’s what’s dumb about this and why smart investors win:

    It’s not like there was never going to be another new iPhone. It’s going to come out sooner or later. That they announce a rumor and the stock gets a bounce is ridiculous.

    Smart investors know this and just ride out and buy the dips.

  2. If you don’t know by now…….never will.

    It’s all just a game that people like CNBC/GS/etc and their cohorts (sp??) on wall street play. They work as a team to bring the price down then up then down then up then down then up…. Etc. When they have done this enough times they take the stock to another level and repeat the process again. All this this manipulation has to appear legitimate.

  3. Oops, touched the publish button before I finished my comment. Here’s the rest.

    ….has to appear legit. They do this by having the media with whitch they work with publish rumours that can support their cases just to avoid looking like they are doing something illegal. Now what about the media that does not work with them? You might ask. Easy!! They simply ignore that media most of the time. That’s why sometimes the stock reacts to the rumours and sometimes it doesn’t.

  4. Uh. Stocks mostly (50%) move in groups, not individually. The whole market is bad because of jobs, making luxury tech purchasing (read: consumer electronics) a lame market. ALL OF TECH IS BAD NOWADAYS. If you’ve seen 3 seconds of news this month you would have known this.

    The fact that Apple picked up was because the whole market picked up (hinging on the Greece recovery). Seriously guys, this is nuts.

  5. The manipulators allowed Apple to move up today so they can short it back down for the rest of the week. Apple will give back all its gains thanks to the shorting crowd and stocks like Netflix, Amazon and VMWare will keep their gains.

    Apple stock is lazy just like the Greek populous. They love to take from the government but give back nothing in return. Putting money into Greece is like trying to fill a bottomless pit. That’s how it’s been with Apple for the last seven months. At least with Apple there might be something to gain if you hold it long enough. Forget Greece. Even the ancient gods on Mt. Olympus have forsaken that place. They should dig a moat across northern Greece and completely separate it from the rest of that continent.

    Oh, well, Apple bulls. Prepare to get shorted back down despite today’s excitement. Apple is just too easy to short thanks to delayed iPhones, slowed iPad production, a skinny Steve jobs, a rumored TV venture, a disappointing back-to-school sales promotion, iCloud 5GB limits, etc, etc. Apple, they love to short you, babe. When they know they get away with something indefinitely, why stop.

    1. “When they know they get away with something indefinitely, why stop.”

      Until the market comes back and bites them in the ass, and they have to go find a job driving a cab. Plenty of people lose their asses going short. There are no mysterious “manipulators” who just plug into the stock market, make it do what they want, and then take free money out. It don’t work that way.

      1. @Mac Daddy,
        “Until the market comes back and bites them in the ass, and they have to go find a job driving a cab. Plenty of people lose their asses going short. There are no mysterious “manipulators” who just plug into the stock market, make it do what they want, and then take free money out. It don’t work that way.”

        Actually that is just the way it works. The key is not being so greedy that you get caught by the SEC. And in todays world, “greed is good” so do not expect it to stop anytime soon. Just play along, buy low and sell high. Work with maybe 10 % of your stock and just make money.

        Sadly the crooks are winning today. 🙁

        Just a thought,
        en

    2. Simple phrase: Day Trader Dullards.

      The parasitic pros count on the 3Ds to blow their dough on social engineered market hype, then they rake it up into their own accounts. Suckers. This cat and mouse behavior explains a lot of stock price gaming.

      1. Correction: Replace errors with ‘DayTrader Dullards’ and ‘2Ds’.
        That’s what I get for attempting to be creative while falling asleep zzzzz

  6. Why not get it over with and have Apple buy Greece… The climate is as nice as Cupertino and as long as the Greek don’t have to do any work on it they will probably let him land as many flaying saucers as Jobs wants…

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