Apple’s stock has the flu; FBI probing rogue trader at Rochdale Securities

Cody Willard writes for MarketWatch, “Here’s an important Apple headline for technical traders.”

Regulator Investigating Rochdale Trading: A person familiar with the thinking of Rochdale executives said a trader at the firm received an order for stock in Apple Inc. but bought 1,000 times the number of shares requested. The trader is saying the extra shares were ordered by mistake, the person said, but the firm is alleging the actions were intentional. The company suspects the trader was working with an outside party to execute the trade and profit at the firm’s expense, according to this person.

Willard writes, “It’s possible that this rogue trader of a billion dollars worth of stock at a tiny brokerage firm and the subsequent unwinding of that trade has been a weight on the stock, although the reports indicate right now that the trade was ‘immediately unwound,’ at least according to the NY Post.”

FBI probing Rochdale Securities: [‘Rogue’ trader] Miller’s $1 billion Apple trade was discovered and unwound in the same day. He stopped going to work the next day. “Miller, who typically focused on the biotechnology sector, has not returned to work since placing the trade, several sources said. ‘He walked out the door the next day and never came back,’ said one person familiar with the situation.”

“Even if the billion dollar AAPL long trade was unwound the very next day, that forced trade alone would have definitely made the stock tank lower that day affecting the technicals thereafter,” Willard writes. “I have been long and telling people to get long AAPL since $7 and I’ve seen many a 20%-plus pullback over the years that would make the current 17% pullback seem like a pimple on a wild boar’s back.”

Read more in the full article here.

MacDailyNews Take: Something’s fishy.

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

Related article:
Rochdale said to seek capital lifeline after AAPL trading error – November 2, 2012


  1. the weirdest thing about this is that every time I’ve been to the store, there is still a line around the block for the iPhone 5. have never seen constant demand like this outside of the line for Space Mountain at DisneyWorld.

    the iPad mini and the iPhone 5 will be going in the back door and out the front door of the mac store as delivered… WTF with the stock?

  2. It doesn’t seem like the flu. It’s more of a psychosomatic disease. Wall Street says Apple is sick and Apple seems to be following Wall Street’s advice. I still think Tim Cook should have more concern for his patients. He might try doing some treatment with all that reserve cash instead of just letting the patients die.

  3. Since AAPL @ $30 per share ago, 🙂 there has been a lot of ups and downs in suspicious movement. But I and many regulars just bought anyways!!! The products keep coming and they are selling. I hope after this Election 2012 that by next year 2013 AAPL is at $829 per share 🙂

  4. My theory: Traders are sick-to-death of the consistent and blatant AAPL stock price manipulation. Therefore, AAPL has been tossed off the table for consideration.

    This is punishment imposed on the AAPL manipulation parasites, not apple. That’s fine with me!

    With time the manipulators will relent, fsck-off and let AAPL proceed to its realistic price, over $800, as it would have without their abusive intervention.

    IOW: Go crawl off somewhere and die, stock manipulators!

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.