Earlier I posted the 3C charts of AAPL. First of all, AAPL is known for years now to give lowball guidance and thn come in and beat, they've been doing it for years.
Obviously 3C showed distribution, meaning someone big was getting out of the stock. Even if AAPL sails to a new high tomorrow, a LOT of people just got crushed as last I checked AAPL was trading down over 5%. Here are the earlier 3C charts this afternoon.
http://wolfonwallstreet.blogspot.com/2010/10/aapl_18.html#links
Earnings is a strange period, like I said earlier, it's mostly about sentiment and not, "what have you done", but "what will you do?"
Thus far IBM and AAPL are taking the averages down pretty hard with them. The DIA and SPY have nearly given up today, the QQQQ has given up a few days of gains. This is after hours so it isn't the end of the story, we'll have to wait until the morning to see if anyone is buying AAPL on the dip, assuming it remains negative like this. However, this is 3C's strong suit. What is the underlying action? In this case, some big boys were getting out of the way. Maybe they buy tomorrow at cheaper prices, 3C should show it pretty early on, but as of now it sure feels like there's a change in the air.
5 years ago
2 comments:
Yep, SPY was a flash crash at the end:
http://www.bloomberg.com/news/2010-10-18/nyse-euronext-cancels-trades-of-s-p-500-etf-at-9-6-below-opening-price.html
Totally broken market.
I've traced many of these flash crashes, this one I can't because of after hours, but it's plain to see in EVERY SINGLE ONE, 3C 1 min goes very negative as if there's someone moving out big time, then there's positive divergences into the bottom of the crash. These HFT firms are basically saying, "There's no one here to play ball with, so we'll make up our own game". Don't forget, it's not just the money they make buying low, but also the money they make on the rebates from the volume. This is a really ugly trend in the market and if the SEC doesn't put a stop to it, no one will ever have confidence to re-enter the market-EVER!
There's way to many to be "Fat Finger" trades.
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