To screen ETFs by asset class, performance, yield and more, check out the
View as an RSS Feed
WHY WE SHOULD CARE ABOUT THE 12/05/2012 APPLE MARGIN HIKE SELLOFF
Very simply what is happening is - Apple has a HUGE investor base holding $500 billion in shares. When a panic starts due to whatever trigger - manipulation, margin hikes, Earnings miss, the stock sell off feeds on itself. It becomes a rush for the exits. To replace these investors new ones come in at lower prices. It takes time to stabilize and resume momentum. Often, a catalyst is needed to calm investors and get them back in.
Technical analysts are not helping matters by yelling out ranges from $420-$480.
Secondly, Apple did have two technical misses / narrow beats vs. Wall Street consensus. Investors are cautious ahead of the next earnings report which may also exhibit weakness (unlikely but possible). After Jan earnings (if strong as pros expect), we can expect to see new strength in Apple.
Dec 9, 2012. 06:00 AM
Link to Comment
Xignite quote data
© 2015 Seeking Alpha