michiganjake

Hedge Fund Liquidations Bear Some Blame For Market Drop

Totally agree with your thesis. Remember the close of last year? All of the big hitters were up in early January and then the sell off by the hedgies and mutual funds. The drop was enormous. As I recall Apple was over 200 and dropped to 115. After the bottoming out it gradually returned into the 190's before this most recent hit. My take is they make it on the way up, sell to make their returns look good, short to make more money, and then buy back when they get done squeezing! Apple will likely report a stellar quarter again, and is releasing new product info this coming week. They are bullish now and Apple will be up until the blowout quarter is announced. Then the usual Apple COO statement that the next quarter will not be very good, and a sell off for some quick money will happen again. Holiday sales will be strong, the quarter will come in past Apple's stated expectations and the stock will return to high times again. And the beat goes on.