What’s behind unusual trading in Apple

“Shares of Apple have exhibited many trading anomalies in the last week since we predicted that profit-taking might take place around the $600 level,” Evan McDaniel writes for optionMONSTER. “Sure enough, it appears that others were on the same page this week as Apple has seen its worst performance in nearly two months.”

“In my opinion, it appears that profit taking by at least one large institutional player is keeping AAPL in its recent sideways range,” McDaniel writes. “Do I think Apple will go higher? yes, but not after a solid base is formed above $600.”

McDaniel writes, “Which brings me to the ‘flash crash’ in Apple on Friday morning. Many have speculated that the sudden drop to $542.80 was the result of a misprint or a computer glitch. But similar trades hit the tape earlier in the week and were canceled, as was Friday’s. I believe that these trades were done intentionally to scare off buyers and slow the stock’s momentum, with full knowledge that the transactions would be canceled.”

Read more in the full article here.

MacDailyNews Take: Ah, the old “intentional error.”

One good thing, among many, with Apple being the most valuable company on earth is that it’s harder for criminals to manipulate the stock than it was for them on the way up, where they could drop some product FUD or a Jobs health scare rumor on a whim and cash out. Too much attention is on AAPL now for them to screw around too much. Still, where there’s a will there’s a way – or the will to try, at least.

So, where’s the SEC? Still asleep?

[Thanks to MacDailyNews Readers “Fred Mertz” and “Arline M.” for the heads up.]

Related articles:
Apple and the risks of trading 29,000 times per second – March 25, 2012
BATS pulls IPO; glitch rattles, briefly halts Apple trades – March 23, 2012

14 Comments

  1. The “brightest minds” from our high schools are recruited by colleges and businesses to end up on Wall Street to invent new ways to manipulate our financial system to “make” money. Some equally brilliant minds are needed to regulate them…..

    Where does that leave us?

  2. The SEC is not asleep. They’ve been de-clawed and de-fanged by the repeal of the Glass–Steagall Act and by passage of alleged reforms to financial regulation.

    1. Not to mention, most people working for the SEC in positions of authority are former bank and/or investment firm employees. The SEC doesn’t care about the little guy or gal. They’re only interest is in protecting their friends in cigar room at the club.

    2. Too many people whine about the government being too wimpy, but then complain that the government should do less. Which is it?
      The problem is that our elected officials care more about funding from large corporations than about individual voters. When big corporations own our government, it will NOT be small. It’s just that the crazy bureaucracy will be used to tie up the little guy, while leaving loopholes for the big corporations.
      What does that mean? It means that BOTH those on the left AND right of politics should unify around the idea of getting back our representative government. Then, the battle will be about how much or how little the government should do for US. Right now the only “people” winning are big corporations, while their media branches trick you into blindly voting for either the blue or red flavor of crony capitalist. Don’t play their game!

    3. Which in turn was driven by a financial system created by the members of that industry, and passed through the promise of unlimited campaign contributions, thanks to Citizens United and the Supreme Court.

  3. @Stephen and Krioni: I agree that the SEC is infiltrated with former financial industry people who act as a fifth column to look after corporate interests. I’m in favor of any regulation that serves to helps the free market live up to its avowed virtues; viz. free, open, honest, and competitive. I am convinced that a free market does not correct all problems and government controls are sometimes necessary. It is way past time to restore the Glass-Steagell act.

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