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Apple Correction Sends Risk Sliding

Tyler Durden's picture




 

It seems, just as everyone knew but really did not want to admit, that AAPL is the core (pun intended) of the entire risk-rally. With the re-appearance of the bond-market this morning after their long-weekend, risk-assets everywhere have caught the tech companies' cold with EURUSD at one-week lows - back under 1.2900, S&P futures tumbling back towards pre-QEternity levels and having wiped out all of last week's gains, as AAPL is down over 2% (seemingly picking up speed once we noted the 10% iCorrection earlier). Oil is holkding gains while USD strength is sapping Silver, Copper, and Gold's performance. Treasuries have snapped back to low yields of the day (down around 4-5bps). VIX has snapped back above 16% (up around 1 vol).

 

S&P futures tumbling - wiping out last week's gains...

 

as EURUSD falls back below 1.2900...

 

 

meanwhile Jeff Gundlach is laughing...

 

Bonds vs Stocks...

 

Charts:Bloomberg

 

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Tue, 10/09/2012 - 11:10 | 2871132 the not so migh...
the not so mighty maximiza's picture

iSaturation level reached globally?

Tue, 10/09/2012 - 11:17 | 2871161 Precious
Precious's picture

Bernanke and Schumer now holding a press conference to announce QEAPPL.

Tue, 10/09/2012 - 11:19 | 2871177 Lost Wages
Lost Wages's picture

If the elite want to remain in power, they must cash out their Cayman Islands accounts and buy AAPL post-haste!

Tue, 10/09/2012 - 14:56 | 2871371 TruthInSunshine
TruthInSunshine's picture

I know not the how, when or why, but it doesn't matter, because it will happen, and when Apple, as a single entity, respresenting 2.3% of the entire market cap of all global equity markets combined (and 20% of the Nasdaq) crashes, let alone the tag-alongs, rope-a-dopes & hook-line-sinkers that comprise the rest of the equity casino, in what is a Bernank/ECB/PBOC/BOJ blown uber-bubble, amidst a financial "network" of actors that's so highly leveraged in so many ways, both transparently (scary enough) and opaquely (Boo!), it's merely one, credible, predictive strand of evidence of how massive the next crash is going to be.

This is not a slight against Apple, specifically, but written to state how the pox of artificial bubbles & leverage created/enabled by central bankers and deeply captured regulators & legislators has not receded post-2008, but rather, has grown incredibly more ominous as an inevitable destructive tsunami that will open a cap of whoop ass on the global economy (the real economy, which will ultimately pulverize the fictional "unicornium" financial economy).

The naivety and arrogance of central planners...like men trying to turn a hurricane with a box fan.

Tue, 10/09/2012 - 11:52 | 2871322 Stoploss
Stoploss's picture

No one really believes with three auctions today, AAPL won't close back at vwap?

It's noon, cover time.

Tue, 10/09/2012 - 11:19 | 2871173 Blasé Faire
Blasé Faire's picture

What's the terminal velocity of an AAPL dropped off a cliff?

Tue, 10/09/2012 - 11:21 | 2871180 Lost Wages
Lost Wages's picture

I believe Sir Isaac Newton stated, "The bigger they are the harder they fall," in regard to apples.

Tue, 10/09/2012 - 11:14 | 2871137 Kreditanstalt
Kreditanstalt's picture

Risk on...risk off...risk on...risk off...this is just silly.

"Risk off" is, perplexingly, a time for SELLING gold?  I'll never understand this but, then again, I'm not leveraged to the gills or using other people's money...

 

Tue, 10/09/2012 - 11:26 | 2871196 fuu
fuu's picture

More for us then.

Tue, 10/09/2012 - 11:12 | 2871140 Ineverslice
Ineverslice's picture

 

Walk please, don't run....

Tue, 10/09/2012 - 11:20 | 2871142 malikai
Tue, 10/09/2012 - 11:21 | 2871181 forwardho
forwardho's picture

Malikai, thanks for link. Great hourly graphic.

Tue, 10/09/2012 - 11:14 | 2871151 fuu
fuu's picture

Come to pappa.

Tue, 10/09/2012 - 11:15 | 2871156 Grand Supercycle
Grand Supercycle's picture

As mentioned previously, overextended AAPL weekly & monthly parabolic charts are at EXTREME levels.

This will end in tears and longs will be badly burnt.

http://trader618.com

Tue, 10/09/2012 - 11:18 | 2871170 Super Marco
Super Marco's picture

AAPL hit lower level BB levels(20, 2.0) Plus mad production underway of the iPad mini. Bullish till year end.

Tue, 10/09/2012 - 11:19 | 2871172 spastic_colon
spastic_colon's picture

Indexes have breached the bottom of the June re-election channel, last time this happened was July 24-26, unfortunately risk is still to the upside if you're short here IMO

Tue, 10/09/2012 - 11:19 | 2871174 Dr. Richard Head
Dr. Richard Head's picture

This might be a good time to revisit this article from ZH - http://www.zerohedge.com/news/2012-09-25/how-12th-century-mathematician-just-doomed-bernankes-wealth-effect

"Leonardo Fibonacci (1170-1250) may have just stuck his 'golden-ratio-based' fork in the equity market's rally. As the following chart shows, the diminishing marginal utility of Quantitative Easing's wealth effect has followed a rather remarkable pattern... and today marks the next turning point.

Applying a Fibonacci-based 61.8% retracement level to each of the time-periods following the March 2009 lows, produces a very interesting cycle overlay on the S&P 500 rallies..."

You fucks here at ZH are a bunch of soothsayers.  Could you read my palm Tyler?

 

Tue, 10/09/2012 - 11:24 | 2871189 Spastica Rex
Spastica Rex's picture

Finding patterns in the stars.

Tue, 10/09/2012 - 11:22 | 2871182 Kreditanstalt
Kreditanstalt's picture

Apple is down a tiny bit, less than 2%.  But gold, silver, comodities and just about everything else is totally correlated and all PLUNGE.  Completely incomprehensible - unless you realise the desperation for YIELD & stupid leverage of the big guys...

Tue, 10/09/2012 - 11:26 | 2871193 Lost Wages
Lost Wages's picture

It's no big deal. From a technical anal-ysis standpoint, they might be putting a handle on silver's cup.

Tue, 10/09/2012 - 11:47 | 2871294 SmallerGovNow2
SmallerGovNow2's picture

Dollar up metals down, but begs the question, why is dollar up?  Why doesn't oil go down with the stronger dollar?  Fundamentals mean nothing any more in manipulated markets...

Tue, 10/09/2012 - 11:24 | 2871185 Blasé Faire
Blasé Faire's picture

I've read the iPhone 5 is more resilient than the GSIII in drop tests.  Is the same true for AAPL vs Samsung (005930 KS) drops?

Tue, 10/09/2012 - 11:44 | 2871274 css1971
css1971's picture

Both are irrelevant now, the Lumia 920's out next month and NOK is up.

Tue, 10/09/2012 - 13:25 | 2871632 Floodmaster
Floodmaster's picture

Apple products are in their decline stage, they are the next rimm.

Tue, 10/09/2012 - 11:26 | 2871194 FubarNation
FubarNation's picture

Must...... resist..... urge..... to..... spend........ FRN's.....until..... delfation.......finished....

Tue, 10/09/2012 - 11:28 | 2871200 Tense INDIAN
Tense INDIAN's picture

The GODFATHER is in INDIA today fellas...along with timmy........

 

http://markettechnicals-jonak.blogspot.in/

Tue, 10/09/2012 - 11:45 | 2871279 ParkAveFlasher
ParkAveFlasher's picture

Gotta preach to those damn stone aged Hindus that the barbaric relics they ritually hoard are better off stored in a safe, central place, and then rehypothecated by enlightened bankers.  The stone agers can have it back in another life.  Paper, Punjab, Paper!!

Tue, 10/09/2012 - 11:33 | 2871206 franzpick
franzpick's picture

Metals and equities falling apart here, NDX making 2 month low, but what's the news?

Tue, 10/09/2012 - 11:41 | 2871220 Democratic koolaid
Democratic koolaid's picture

When Apple (NASDAQ:AAPL) starts going down all that will mean is someone will have created a better star trek tricorder, or going to the mountains for you Kool-aid drinkers.

http://www.xprize.org/x-prize-and-qualcomm-announce-10-million-tricorder-prize

Tue, 10/09/2012 - 12:03 | 2871365 Stochdoc
Stochdoc's picture

100% of Apple's products are manufactured/assembled in China.

 

Right there is your albatross, kids.

Tue, 10/09/2012 - 12:20 | 2871422 I am a Man I am...
I am a Man I am Forty's picture

If you have the unfortunate opportunity to listen to Doug "Forever Wrong" Kass on CNBC regarding his bearish call on apple,  I would like to point you to his oh so awesome piece titled "Don't Buy Apple's One Trick Pony" penned back in January of 2007.  I think it was trading around $85 back then.  If CNBC was worth a shit they would call him out on this, or at the very least quit having him on giving his opinion on a company he has been so epicly wrong.

 

http://www.thestreet.com/story/10332933/1/dont-buy-apples-one-trick-ipho...

 

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