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Apple Plunges $20 At The Open, As Rumors Of COO Departure Swirl

Tyler Durden's picture


The company that determines the market, AAPL, by accounting for 20% of Nasdaq weighing, just gave the nearly 200 hedge fund managers who own it a heart attack. While the early swoon in the stock by $15 is not (yet) attributed to some fat finger, or flash crash, the move wiped out billions in market cap. The reason, according to FOTW, is that the COO may move to HPQ (up 2% on the day), or some such narrative which seeks to explain why the world's most overvalued company may dare to have a down day. Either way, this has now solidly broken the +/- 2 std dev upchannel seen for pretty much one full month. The entire market is now down as a result of one stock being responsible for overall direction and momentum. The issue is that who knows how many HFTs are now underwater on their daily cost averaging in the name, which may potentially spark a material selloff. Watch for comparable action in the four horsemen of the tech apocalypse: AMZN, NFLX and BIDU.



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Tue, 09/28/2010 - 10:00 | Link to Comment tunaman4u2
tunaman4u2's picture


Tue, 09/28/2010 - 10:01 | Link to Comment The Axe
The Axe's picture

add the HUGE volume on the dip

Tue, 09/28/2010 - 10:01 | Link to Comment matthylland
matthylland's picture

POMO today in about 15 minutes though, right?
Apple will be saved, don't you worry.

Tue, 09/28/2010 - 10:07 | Link to Comment taraxias
taraxias's picture

Totally agree, nothing more than a minor glitch in the matrix.

Tue, 09/28/2010 - 11:26 | Link to Comment ZeroPower
ZeroPower's picture


Like clockwork, check it out. ES in positive territory. Fucking ridiculous.

Tue, 09/28/2010 - 10:08 | Link to Comment Bill Lumbergh
Bill Lumbergh's picture

Flash Crash 2.0?  Von Havenstein better get the presses warmed up.

Tue, 09/28/2010 - 10:09 | Link to Comment Pillage
Pillage's picture

Could we see fat finger today?

Tue, 09/28/2010 - 10:10 | Link to Comment George Costanza
George Costanza's picture

remember 1999 to 2001, when seemed like everyone owned the same 10 tech stocks.   History is repeating.

Tue, 09/28/2010 - 10:22 | Link to Comment Paper CRUSHer
Paper CRUSHer's picture

Right,when we witnessed the market cap of Cisco approach an outrageously ridiculous $1Trillion.


Tue, 09/28/2010 - 10:10 | Link to Comment wswarrior
wswarrior's picture (CRM) is even more ridiculous.  $15B market cap on earnings of about $200M.  You can't even use the growth rate to support that out of this world valuation. 

Tue, 09/28/2010 - 10:11 | Link to Comment Edna R. Rider
Edna R. Rider's picture

Maybe we can get that dishonest clown Tepper to jump in and support the market.

Tue, 09/28/2010 - 10:12 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Makes sense that appl be the rotten one in the bunch.

They express the worst of consumerism AND Design, all rolled into one. Jobs is the pied piper playing a broken flute.

Of course this could also be a reaction test. How did you react?


Tue, 09/28/2010 - 10:13 | Link to Comment shushup
shushup's picture

Maybe the PD's will use the gov's money to short the market today? Or are they forbidden to short?


Tue, 09/28/2010 - 10:13 | Link to Comment Spartan
Spartan's picture

POMO will save us!

Tue, 09/28/2010 - 10:13 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Cook is NOT going anywhere. He's apples back up plan if steve jobs crashes.

Tue, 09/28/2010 - 10:21 | Link to Comment Rogerwilco
Rogerwilco's picture

Tim Cook got a taste of power when he ran AAPL during Jobs' medical leave last year. The offer from HPQ must be very tempting, he's not getting any younger, and Jobs is gaining weight.

Tue, 09/28/2010 - 10:16 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

This has nothing to do w the COO. This has to do with 10 uber-liquid names acting as checking accounts and must owns into quarter end. The lights are on and the cock-a-roaches are running

Tue, 09/28/2010 - 10:17 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Tyler you were right once again in one of your previous posts that when Aapl goes down it will take the Market with it.

It also goes to show that when stocks correct they take no prisoners and give no warning.

Tue, 09/28/2010 - 10:17 | Link to Comment Dagny Taggart
Dagny Taggart's picture

Could this be more 1400:1 insider selling per chance? How soon is that data released?

Tue, 09/28/2010 - 10:17 | Link to Comment UGrev
UGrev's picture

Being against slavery, and not knowing how googles' employees are treated, I'm never buying an apple product.. ever.  Hello Android for my 2yr upgrade with VZ. 

Tue, 09/28/2010 - 10:27 | Link to Comment Dr. No
Dr. No's picture

Not the first time an apple has succumed to gravity.

Tue, 09/28/2010 - 10:37 | Link to Comment Mesquite
Mesquite's picture

Ha Ha Ha

Ah..The Dance of the Algos...

Tue, 09/28/2010 - 10:29 | Link to Comment Cvillian
Cvillian's picture

(In Belushi "Toga" voice) POMO! POMO! POMO!

Tue, 09/28/2010 - 10:31 | Link to Comment Dagny Taggart
Dagny Taggart's picture

AAPL at 10:20am. Hinky. Then the methodical 1 minute steps up...

Tue, 09/28/2010 - 10:35 | Link to Comment mule65
mule65's picture

Looks like $300 today!

Tue, 09/28/2010 - 10:38 | Link to Comment -1Delta
-1Delta's picture

Glad i went short the NQ last night....

Tue, 09/28/2010 - 10:42 | Link to Comment GoldbugVariation
GoldbugVariation's picture

and RIM announced it's iPad competitor at a developer's conference today.  "The RIM BlackBerry Playbook".  Sounds quite rude.

Tue, 09/28/2010 - 10:44 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Where's Harry? How is your AAPL doing today? Praying for POMO?

Tue, 09/28/2010 - 11:06 | Link to Comment MrTrader
MrTrader's picture

Ha, ha, ha. Who are the largest AAPL holders ? :=) Seems, someone simply go rid off its whole inventory.

Tue, 09/28/2010 - 11:10 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

Apple isn't cheap, but acting like this growing tech company is somehow ridiculously overvalued is just wrong.  Tim Cook went to Auburn, previous home of the Ludwig Von Misses Institute (still in the town of Auburn).  Tim Cook would be a huge loss to Apple.

Tue, 09/28/2010 - 11:30 | Link to Comment bugs_
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