What do you think a colossal dump like that telling you..??
If you're a long term investor, you're going to get a better price to buy in at, don't try to guess the bottom, it's too early..
Despite what one idiot keeps saying here about 5 day margin calls, with a large dump like this, calls will go out same day or next day with any number of brokers. I've been there, believe me, when i first started trading, and you're sitting there, sweating, can't sleep at night, hoping the price will snap back and get you out of your call, but it doesn't come..
I guarantee you that there are/were massive amounts of investors that were heavily leveraged because Apple was the never fail stock...
That's why parabolic burst patterns like apple always return to where they started, because buyers on the way up think it's never going to end and the eventual fall destroys all their equity and then some...
Even long term, i'd wait for something under 420...
Keep THIS in mind, especially those who think this is going to rocket back up to 500+. Hedge funds will NOT be piling back into this anytime soon, it's time for them to find alpha in another play and one they pump and dump, like Facebook..
What does it tell me? After some research and some thought here is what it tells me: Possibly some short did the dirty deed or more likely, the dump was caused by a brokerage that has many investors or several large investors with AAPL stock in margin accounts. It looks like a forced sale to me for margin calls. A one time occurrence. The stock regained some of that loss after-hours; a good indicator to me going into the weekend.
Another thing about posting on boards that have long investors only. If i get more thumbs down that ups, i know i'm correct in my analysis..
As a trader, i NEVER want to be on the same side as the retail public in a trade. It's a sure loser...
1). The dump at the close was simply to get the shares under $440 for options exp. Why dump at the end of the day when you could have got a better price earlier? There's no logic to your point.
2). Right now the retail trade is short, so I guess you are on the wrong side? You received one thumbs up and two down(oh ya the board is really dumping on you!).
3). I've held many stocks that have rebounded after everyone said it was 'over': CTSH, Gildan, IMAX. LULU.
4). I think there's very strong value here.
5). If you post on a message board don't get offended just because people disagree with you.
There's nothing convenient about my analysis. I'm long or short, depending on market/equity conditions..
The problem with long term investors, who are always long only, is that they only want to hear the bull case, they don't want to even consider the bearish reasons for this to drop because they don't understand that markets don't necessarily move on fundamentals...
do you think the S&P is at levels they are from 665 in March 2009 on fundamentals..?? It's all thanks to liquidity provided by the Fed, and the current 1504 top si being driven entirely by additional liquidity that will be pumped into markets by Japan due their directive to weaken the Yen. Absolutely nothing fundamental about any of this..
And when markets sell or run, everything goes with it, for the most part...
There are long term support and resistance levels that are in play here now that Apple is back to these levels. 420 is a SURE thing. Any drop below that is an intentional act by WS to suppress the price so they can be THE bottom feeders and own Aapl lower than anyone else. That's why PB's drop to where they do..
In the same manner that central banks are suppressing the price of Gold, so they can be the exclusive owners. They don't want the public in it driving the price up. CB's want them OUT..
So, they want to pump and dump? Do you think that is what they are doing to FB, AMZN, RIMM, INTC, NFLX? I guess that means that they will be leaving AAPL alone for a while and we can trade in this range for a good long time. I guess this will be the new normal for us longs, but do you really think they can take AAPL down much further. Maybe they have moved on....let's hope.
Watch Rimm, it'll tank after the 30th.
As for Amzn, when it goes, it's going to go BIG, down that is..
NFLX, who knows. You think their $300 top was based on fundamentals. Pump it up for all its worth until there are no more buyers and then pull the plug...
Knowing what those tops are and calling them to take short positions is the hardest part, can potentially bankrupt you if you're not risk conscious..
And that's the problem with Apple bagholders. The investing public is clueless, they don't understand the concept of selling to lock in profits, they'll always want more. They think everything goes up forever DESPITE being in our 3rd bubble in a decade..
Apple was different, nothing could ever change that. Uh huh...
genius - ask why - read the Wall Street Journal this week "Apple Bonds" - this dump likely because of a scam bond issued by sleeze BIG brokerages - they paid off in Apple stock at price at issuance - e.g. - 700 ... they got $$$$$$$$$$$$$$$ in pocket due to the $10 dump they likely orchestrated at the close - DISGUSTING - SEC .. BUT FOR US - IT IS OVER - THE STOCK ROCKETS SINCE THE DUMP / THEFT? IS OVER