“Except for a few days in April, if you’d bought Apple (AAPL) anytime after March 12, you’re sitting on a loss right now, based on Thursday’s close of $581.82. And if you’d bought AAPL at its $636 close on April 9, you’re down about 8.6%,” Richard Bloch writes for Seeking Alpha.
“That’s what can happen when volume dries up,” Bloch writes. “On Thursday, Apple traded only 14 million shares. That’s the lowest since February 7 when the stock closed at $468. But even when Apple’s volume is relatively thin, it’s still one of the most liquid stocks on the market.”
Bloch writes, “And Apple does tend to drift around between earnings announcements, especially in the summer. In the last two years, the April to July period has tended to be pretty flat, with more of its gains seen later in the year. That may or may not be a reliable seasonal trend, but in a ‘sell in May and go away’ market psyche, it’s certainly understandable. So for the time being, I suspect that Apple will be subject to the whims of a lot of high-frequency trading algorithms. They can certainly send the company’s market cap up or down by $5 billion in just a few hours, or even a few minutes.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]