“What happened to Apple earlier today? About 9:50 a.m. ET it went from roughly $117 to $111, a fairly significant drop of over 5 percent,” Bob Pisani reports for CNBC. “The usual market rumors quickly surfaced: A fat-finger trade was the most common. There were also product rumors, none of which seemed plausible: iWatch, iPad, even hacking rumors.”
“Occam’s Razor says the explanation with the fewest assumptions is usually the correct one. In other words, the most likely explanation is usually the right one,” Pisani reports. “After talking to several traders, here’s the explanation with the fewest assumptions: Someone sold a ton of Apple. Very fast”
“It looks like someone was trying to sell several million shares in a short period of time. A large seller comes in, and the price dropped, then recovered a bit. That’s how markets work,” Pisani reports. “Still, you can’t help but think if this seller would have been a bit more intelligent, they could have lessened the price impact.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]