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Monday, September 26, 2011

AAPL trading dynamic

The unsubstantiated  claim of an iPad slow down from one analyst from JPM, which then got picked up by the major media outlets, has cause interesting negativity within AAPL.  This has caused AAPL to break from its very short-term trend.

Usually, with a potentially major announcement from AAPL, the stock would see continued momentum going into the announcement.  But with the heightened negativity, and on-edge investors, the markets are giving credence to the statements.

Remember today, because we are witnessing how manipulation within a stock happens in today's market.

The rumor acted as a catalyst, the media outlets simply passed along the report without questioning the findings and with market negativity taking hold, the 10SMA support does not hold, ruining the short-term trend, allowing for the momentum whores (ie quants or day traders) to flush out the stock.

Is the SEC really going to investigate this? Do they even understand this? Would anyone understand this, unless they follow the dynamic of a stock a closely as a day trader?

All I know is this:

As of last week, Brazil's factory was up and running. The report suggested a weak economy for the slowdown, and no where did it suggest business simply transferred from one factory to another. The only media outlet even stating this is the Business Insider. (The majors are not.)

The stock is near the 390 area support, and in a strong market, today's move would have been a great intra-day trade because AAPL would have come back from this attempt at manipulation. But since we are in a weak market, I do not know if it will act this way. Hopefully it does. (There are subtitles intra-day suggesting it might.) But come earnings, we will know the truth.

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