Apple trading activity could eclipse parade of blue chip results

“Earnings news from the likes of Coca-Cola, Goldman Sachs and J&J should help guide stocks Tuesday, but traders will most intently be watching the trading activity in Apple,” Patti Domm reports for CNBC.

“The darling of Wall Street, Apple has seen its worst bout of selling since the market was bottoming in late September and early October,” Domm reports. “As of Monday, Apple lost nearly 9 percent in five days, and the stock finished down 4.2 percent Monday, near its intraday low, at $580.13.”

Domm reports, “Apple is now down just under 10 percent from its record intraday high of $644.00 on April 10, as a number of factors combined to drive down its shares. In the past week, there was news of a Justice Department suit against Apple and publishers, alleging collusion on e-book pricing.”

“There were also concerns raised by a BTIG analyst about iPhone pricing and the ability of customers to upgrade. There have also been worries about iPad sales, and on Monday, PiperJaffray said NPD data showed a five percent decline of Mac sales in the March quarter, versus the 14 percent increase expected by analysts,” Domm reports. “But traders and strategists are also watching Apple’s technicals, which signal to some it still has a ways lower to go, after its rapid move above $600. How much it will fall is up for debate, since the company reports earnings next week, and that could prove a positive catalyst, or not.”

Domm reports, “Apple’s moves are also worrisome because of its out-sized influence on the stock market.”

Read more in the full article here.

MacDailyNews Take: Too big to fail.

Sorry, but after seeing this play out so many times, it’s difficult to take any of the bullshit “worries” seriously.

[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]


  1. Apple’s worst drop was in 2000 when the dot com bubble burst. They lost 70% of their value after iMacs sales got hit.

    At that point Apple was a one-hit wonder and took a beating once iMac inventory levels rose. The rest of the industry followed.

    This time the % change is much smaller and stinks of market manipulation. The process is something like this:

    1. Apple shares have been pumped up and risen sharply over a few months. Various brokers buy in before the stock rise.
    2. Shorts get set up primed for a big drop.
    3. Whispers start citing various “worries”. A number of “analysts” are cited using information that cannot be corroborated.
    4. The brokers cash in before the price drop.
    5. The market moves to drop aapl price
    6. Hedge funds rake in the money from their various positions.
    7. Good news eventually stops the rot. The brokers get their clients to buy in to pump up the stock again.
    8. Go back to 1 and repeat.

    This effort is well coordinated. The visible players are new but the people behind it are the same.

    1. Well said. I have been in this stock for a decade and this phenomenon is tiresomely familiar. I just shrug my shoulders and ride it out. There is no sign this company is peaking. Apple’s brilliant story is not over.

    2. @ doggonetoo:

      “3. Whispers start citing various “worries”. A number of “analysts” are cited using information that cannot be corroborated.”

      Except when one analyst quotes another, like John Dvorak quoting Rob Enderle, who heard it from Shaw Wu, who heard it from Matthew Hoffman, who listened in on a secret conversation between Mitt and Hilary…the chain of “reliable sources” is nothing but a chain of fools.

  2. Apple needs to take the pro market more seriously. There is a great halo effect there. We professionals need a new Mac Pro. NAB is this week. Would be a great time to announce one.

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