This page has been archived and commenting is disabled.

Checking Out At The Hotel AAPLfornia With 230 Rooms

Tyler Durden's picture





 

Is this it? Nobody knows for sure, but just like yesterday's GOOG pogrom sent 165 hedge funds (at least) scrambling for cover (but, but, it is a perfectly efficient market - unpossible), and destroyed their October P&L in a millisecond move, forcing even the CME to lower index margins to avoid margin calls (as we predicted), so today's violent drop in AAPL stock to the furthest below the 100-DMA since June 2011 may test the nerves of all those residents of the hedge fund hotel cAAPLfornia, which at last check was a record 230 longs as of June 30 (and now well higher), many of whom have a cost basis that is now above the current price. Will selling remain cool, calm and collected, or will someone panic ahead of what is sure to be another late day margin call bonanza for the repo desks forcing massively levered beta-chasing hedge funds to dump assets in order to procure the suddenly invaluable margin? Stay tuned and find out.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 10/19/2012 - 12:13 | Link to Comment CPL
CPL's picture

250 enter!!

1 company leaves!

Fri, 10/19/2012 - 12:27 | Link to Comment AlaricBalth
AlaricBalth's picture

The hedge fund managers will tell you Apple's 12% drop since Sept 21 is "just a flesh wound".

http://www.youtube.com/watch?v=zKhEw7nD9C4

Monty Python - Arthur vs. The Black Knight

Fri, 10/19/2012 - 12:34 | Link to Comment TheDarkKnight
TheDarkKnight's picture

Ah yes but then lest we forget, these fools of managers have fallen victim to one of the great blunders! The first of which is "never get involved in a land war in china" (ironic), but only slightly less well-known is this: "Never go against a Sicilian when death is on the line"... and of course the new one for the list is "never try and long inflated tech stocks" or maybe something along those lines..

 

http://www.youtube.com/watch?v=LfWDilXZQEo

 

 

Fri, 10/19/2012 - 13:07 | Link to Comment The trend is yo...
The trend is your friend's picture

"Margin calls gentlemen, you know the rules of the exchange"

Trading Places 

Fri, 10/19/2012 - 12:45 | Link to Comment Antifaschistische
Antifaschistische's picture

Maybe it's a good time to remind AAPL holders that both short term and long term capital gains taxes will be rising in 2013...it's the LT Rates that are going to hammer those in the 15-28% bracket.

So, dogpile on the selling before Uncle Sam skim his pound..

http://www.backtaxeshelp.com/tax-blog/filing-taxes/capital-gains-rates.html

 

Fri, 10/19/2012 - 12:27 | Link to Comment The Wizard of Oz
The Wizard of Oz's picture

I HEAR THE HELO APPROACHING! COULD IT BE?

 

 

 

UNCLE BEN TO THE RESCUE BITCHEZ!!

Fri, 10/19/2012 - 12:43 | Link to Comment CPL
CPL's picture

I couldn't have asked for a better idea...for my PM's.

 

Fri, 10/19/2012 - 12:45 | Link to Comment jcaz
jcaz's picture

the CME will just drop margin on the e-minis down again-  backdoor Fed action.....

Hey CME- make it -50% margin and pay us to go long- get it over with already.....

Bunch of bullshit.....

Fri, 10/19/2012 - 12:56 | Link to Comment FL_Conservative
FL_Conservative's picture

Better find a seat when the music stops.

Fri, 10/19/2012 - 13:41 | Link to Comment Downtoolong
Downtoolong's picture

250 enter!! 1 company leaves!

And then they can play with themself.

Won't that be fun to watch?

Fri, 10/19/2012 - 12:13 | Link to Comment Lost Wages
Lost Wages's picture

Perhaps the central banks are just having a sip of tea and waiting for everyone to tucker themselves out.

Fri, 10/19/2012 - 12:14 | Link to Comment fonzannoon
fonzannoon's picture

the fast money meatheads are pitching ibm aapl etc hard and these morins with their 10 second time horizon are reminding the sheep to have a 5 year time horizon...

Fri, 10/19/2012 - 12:25 | Link to Comment malikai
malikai's picture

I'm pretty sure I'll be a buyer within about 5 years, once all this printing nonsense is over.

Fri, 10/19/2012 - 12:15 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Time for a little less "Hotel California" and a little more "Two man enter, one man leave" in the "market".  Enough with the posts on crapple, it is what it is.  No profits are ever recognized until you actually take them.  At least that hasn't changed, yet.

Fri, 10/19/2012 - 12:16 | Link to Comment malikai
malikai's picture

If it is AAPL's time, it's the big one for Tech Bubble 2.0.

Fri, 10/19/2012 - 12:19 | Link to Comment fonzannoon
fonzannoon's picture

u think malikai? i wonder if it is amazon. i think it could be spectacular if that one goes.

Fri, 10/19/2012 - 12:28 | Link to Comment malikai
malikai's picture

Apple is just too big. Amazon as well.

Both too reliant on a consumer who'se usefulness (purchasing ability) is now negative.

One thing Amazon does have going for it is they are trying to diversify out a bit, while Apple seems to have gone all-in on the old model.

Just my observation.

Fri, 10/19/2012 - 12:37 | Link to Comment Mark Wilson
Mark Wilson's picture

Just ordered a nice Ingersoll Rand 317A Heavy Duty 5-Inch High Speed Pnuematic Sander from Amazon for $61.50. :)

Fri, 10/19/2012 - 12:51 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

And I bet Amazon jumped through hoops to get you to buy that item at that price.

I was in the market for a camera a few months ago.  I checked Amazon first.  I didn't buy then.  They were relentless.  Where there was Snorg, there was suddenly a list of cameras with many of the same features I was looking for.

I received weekly emails.  I couldn't open a web page without one of their banners opening with.

They knew what I wanted better than I did.

Excellent return policy, although they are taking a little bit off the refund for return freight nowadays.  Still beats hauling your ass to a brick-n-mortar to MAYBE find something you are looking for.

I would say Amazon is best able to come out the survivor in this case.

Fri, 10/19/2012 - 13:20 | Link to Comment Mark Wilson
Mark Wilson's picture

Indeed.

I happened to see a news ticker about Ingersoll's earnings and remembered I needed a sander for work. Went right over to Amazon and whoomp! There it is. Never left my chair.

Fri, 10/19/2012 - 13:32 | Link to Comment Nobody For President
Nobody For President's picture

Agreed - I was all over the net looking for several off-sized bandsaw blades for my table model bandsaw, and wound up buying from Amazon, that had the only game in town for on-line. I'm way too far in the boonies to just go to town and pick up odd ball stuff that is not Ace hardware stocked - the nearest supplier of these bandsaw blades is +500 miles from me, so online is the way to go, and I wind up at Amazon a disgustingly amount of the time...

Fri, 10/19/2012 - 14:25 | Link to Comment malikai
malikai's picture

The striking thing about this to me is that you guys are talking about hardware.

I'm talking about EC2 and their other IT related services. In addition to the books.

I wonder how many other engineering or scientific types end up buying something from them, often..

Fri, 10/19/2012 - 12:39 | Link to Comment slaughterer
slaughterer's picture

Amazon is relatively safe during earnings seasons, because earnings do not play an important role in analyzing AMZN stock.  same with LNKD.   soon NFLX will join this club.   

Fri, 10/19/2012 - 12:41 | Link to Comment Skateboarder
Skateboarder's picture

Apple has made its loot entirely on the premise of hype, cultishness, and exclusivity due to price point. Amazon has already expanded into all walks of life - Apple has nothing more to hype about and nowhere in particular to grow. I'm sure Tim from Supply Chain doesn't even know how a transistor works.

I'd say AAPL's gonna linger around 650 for a while before going up a little higher around Nov 2nd's iPoop Mini release. Don't see an NDX rebalance hapenning.

Fri, 10/19/2012 - 13:49 | Link to Comment Temporalist
Temporalist's picture

Fed:  Amazon?  They sell printers right?

Fri, 10/19/2012 - 12:17 | Link to Comment jaap
jaap's picture

Criminals shorting gold now....

Fri, 10/19/2012 - 12:26 | Link to Comment seek
seek's picture

It's a signal. It either means someone is offloading because they need $ for margin (not surprising given the events of the last couple days), or they're cratering the price intentionally for headroom because of what's coming next.

Either way, load up, bad news is on its way.

Staying on the Apple topic -- so far we have Intel revs down 10%-ish on year, AMD down ~ 30% on year, Google down 10% on quarter, all of these being mostly due to bad macro condititions. Yes, Apple's products are new and cool, but they've got to swim upstream pretty fucking hard to stay ahead of this. I'd imagine the results next week disappoint, and if not, it's a setup for a pretty ugly 1H2013, if not Q4.

Fri, 10/19/2012 - 12:30 | Link to Comment youngman
youngman's picture

Yes the old relic has been very quiet the last few days...I aded some today....nothing better going on in the world....no one has turned the corner...everyone is still printing and has to do more...

Fri, 10/19/2012 - 12:54 | Link to Comment Lewshine
Lewshine's picture

Friday's are not allowed to be hopeless - Ben is prepping the plow as I type this post. Expect a swash of a few loose billions to hit the E-mini's in 3 - 2 - 1...

Fri, 10/19/2012 - 12:19 | Link to Comment The Shootist
The Shootist's picture

Peanut Butter Jelly Time!

Fri, 10/19/2012 - 12:20 | Link to Comment AustriAnnie
AustriAnnie's picture

iSuggestYouPanic

Fri, 10/19/2012 - 12:23 | Link to Comment Lost Wages
Lost Wages's picture

It's just a little Karate Kid economics. RISK ON! RISK OFF!

It's interesting how perception works. GE, Microsoft, Apple are being sold off by intelligent hedge funds finally come to their senses, but silver is being raided by the man.

All so-called "risk" assets are pretty much down today. It's one of those rare days TIPS mutual funds and ETFs look like a good investment, so you know it's all baloney.

Fri, 10/19/2012 - 12:25 | Link to Comment AustriAnnie
AustriAnnie's picture

And should you decide to panic...

...don't worry, "There's an App for That"

"The Beat Panic app takes you through a series of flash cards designed in soothing colours and the text assists you in overcoming the panic attack in a gentle calm manner."

https://itunes.apple.com/gb/app/beat-panic/id452656397?mt=8

Fri, 10/19/2012 - 12:54 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

I hear that works well with a third-party hardware offering, "iMorphine", a dispensary unit that plugs right into the headphone jack.

Fri, 10/19/2012 - 12:26 | Link to Comment Ineverslice
Ineverslice's picture

 

Haa!

Goog in front at check out line.

Fri, 10/19/2012 - 12:19 | Link to Comment The Shootist
The Shootist's picture

I hope Nancy Belalugosi has all her money in it. Couldn't happen to a nicer bitch.

Fri, 10/19/2012 - 14:35 | Link to Comment Vince Clortho
Vince Clortho's picture

Hilary?

Fri, 10/19/2012 - 12:21 | Link to Comment Atlasshruggedme
Atlasshruggedme's picture

3 shares of Google or 1 oz of Gold... 

You decide!

Fri, 10/19/2012 - 12:27 | Link to Comment tocointhephrase
tocointhephrase's picture

Weeeeeeeeeeeeeeeeeeeeeeeeeeee

Edit: Nice 1 month down trend weeeeeeeeeeeeeeeeeeeeeeeeee

Fri, 10/19/2012 - 12:27 | Link to Comment MiddleageThinni...
MiddleageThinninghair's picture

How about crAAPLfornia?

Fri, 10/19/2012 - 12:26 | Link to Comment nmewn
nmewn's picture

And...Dow at -164...lol...all's well, carry on mates.

Dive! Dive! Dive!...arrrugaaah!!!

Wait...wut?

Fri, 10/19/2012 - 12:30 | Link to Comment Ineverslice
Ineverslice's picture

 

very eery, how orderly this is.

Relentless.

Fri, 10/19/2012 - 15:18 | Link to Comment nmewn
nmewn's picture

Its orderly now...looks like they're trying to protect that 1430 S&P area...we'll see when the lunch crowd gets back how much Benny has in his other pocket.

///////////////

Here comes the test.

///////////////////

Just broke through former resistance.

////////////////

And 1430.39 @ 14:54...just damn ;-)

Fri, 10/19/2012 - 12:29 | Link to Comment virgilcaine
virgilcaine's picture

did ya hear the Goo Goo Ceo speak he sound like a bufoon! Sounded like he was having a Palsey spasm.

Fri, 10/19/2012 - 12:33 | Link to Comment soopy
soopy's picture

VWAP!  VWAP!!!

Fri, 10/19/2012 - 12:40 | Link to Comment slaughterer
slaughterer's picture

SPY 144! SPY 144!

Fri, 10/19/2012 - 12:39 | Link to Comment mind_imminst
mind_imminst's picture

Any bets on where the market-juicing rumor will come from this afternoon? A european bureaucrat? A FED governor? Treasury?

You know they won't let the market take a crap. Lately a 1 to 2% drop is all they seem to allow.

Fri, 10/19/2012 - 12:42 | Link to Comment slaughterer
slaughterer's picture

If the market were able to close above ES 1445, it would be a major refutation to the gloomers.  

Fri, 10/19/2012 - 12:48 | Link to Comment fonzannoon
fonzannoon's picture

This is too calm of a selloff. Shorts will cover at 3pmish.

Fri, 10/19/2012 - 12:40 | Link to Comment Osmium
Osmium's picture

Wonder if they can pull an afternoon ramp out of their asses today?

Fri, 10/19/2012 - 14:37 | Link to Comment Vince Clortho
Vince Clortho's picture

All it takes is enough cash to buy some stocks.  Know anybody who has some cash?

Fri, 10/19/2012 - 12:41 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

bernanke just keeping the 10 year in check, will move back north in a little bit

Fri, 10/19/2012 - 12:42 | Link to Comment earleflorida
earleflorida's picture

how to sell the 'btfd' in a 'bot's' premature ejaculation, 'five-nanosecond's lifespan'... without losing your metallica amoeba libido?

Fri, 10/19/2012 - 12:45 | Link to Comment slaughterer
slaughterer's picture

Gold -1.32%

S&P 500 -1.32%

Fri, 10/19/2012 - 12:45 | Link to Comment amadeusb4
amadeusb4's picture

Good time to buy AAPL. With a PE of <15, a div yield approaching 2% and hoards of cash as well as a good product pipeline, this is not AMZN.

Fri, 10/19/2012 - 12:51 | Link to Comment slaughterer
slaughterer's picture

The problem with AAPL is it is over-owned (see above).  

The other problem with the AAPL is the last-minute readjustments on earnings based on the iPhone sales the Big 3 are reporting right before AAPL reports.  

I will not go into whether or not they have lost their creativity.  Nor the macro backdrop nor the competition.  

Fri, 10/19/2012 - 12:51 | Link to Comment Silver Bully
Silver Bully's picture

Meanwhile Gold and Silver are getting pummeled today to give the algo's a nice short covering run.

Gold down $20 below $1721.00

Silver down $0.80 approaching $32.00

If you're an HFT looking for some hot long action, this would be a good entry point (pun intended).

 

Yes, something wicked this way comes.

Or else the Establishment wouldn't be hammering the PM's like this. The only question is . . . before or after Nov. 2nd? Heck, there's a chance it might even land before the next debate.

Fri, 10/19/2012 - 12:52 | Link to Comment Flounder
Flounder's picture

Y'know after traveling through Germany, France and Netherlands this summer/fall and after using and studying the unlocked mobile phone market I noticed a lot of Nokia, Rimm, HTC, Samsung phones out there beyond our contract phone shores.

Fri, 10/19/2012 - 12:52 | Link to Comment Spastica Rex
Spastica Rex's picture

But I thought we had entered the "Knowledge Economy" and all we had to do was let Bill Gates redesign our public school system and then all the smart Americans would have fabulous jobs that required no work while the pathetic Chinese hordes could slave away in gadget factories making all the cool stuff we thought up?

WHAT?!?!??!?111!?!!?!1??11/

Fri, 10/19/2012 - 12:55 | Link to Comment Caviar Emptor
Caviar Emptor's picture

O Yes! What a wonderful world that our planners have made for us!

I hereby announce the end of work (unless of course you want to work by choice in the nuclear power plant)

Fri, 10/19/2012 - 12:53 | Link to Comment Caviar Emptor
Caviar Emptor's picture

The market it is said never gives up her dead when the winds of November come early

Fri, 10/19/2012 - 14:40 | Link to Comment Vince Clortho
Vince Clortho's picture

OK.  A nice +1 for the Gordon Lightfoot reference.  The anniversary for the Edmund Fitz is coming soon.

Fri, 10/19/2012 - 12:57 | Link to Comment JustPrintMoreDuh
JustPrintMoreDuh's picture

Time to turn this sucker around and announce iPhone 6

Fri, 10/19/2012 - 13:04 | Link to Comment Spastica Rex
Spastica Rex's picture

Go for broke: iPhoneiNfinity

Fri, 10/19/2012 - 13:30 | Link to Comment Grand Supercycle
Grand Supercycle's picture

APPLE parabolic...

As mentioned, APPLE parabolic weekly & monthly charts are at EXTREME levels.

Unfortunately longs will be badly burnt.

Head & Shoulders pattern(ie bearish)on APPLE daily chart in progress and downtrend continues.

http://trader618.com

Fri, 10/19/2012 - 13:39 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

Is there an app for meditating while waiting in soup lines?

Fri, 10/19/2012 - 13:50 | Link to Comment Downtoolong
Downtoolong's picture

Checking Out At The Hotel AAPLfornia With 230 Rooms

 

You know what, these f%$#s never leave a tip either.

 

But, at least the fools are liquidating their gold and silver to pay their bill. I feel like Dan Aykroyd and Eddie Murphy in Trading Places every time they hit my bid.

Fri, 10/19/2012 - 14:48 | Link to Comment Rathmullan
Rathmullan's picture

As 230 hedgies have colluded to drive the price of aapl to the stratosphere, less than a dozen have probably colluded to double cross the remainder. This is how it works.....no honor among thieves.

Fri, 10/19/2012 - 15:22 | Link to Comment Lewshine
Lewshine's picture

HERE COMES THE LAST HOUR PUMP...I KNEW BEN DIDN'T HAVE THE NADS TO LET THIS BABY ROLL TO ANY LEVEL OF REALITY!! SAY HELLO TO THE NANNY STATE IN ALL ITS GLORY!!

Fri, 10/19/2012 - 19:37 | Link to Comment Trajan
Trajan's picture

kiss of death Tyler; McD's just had their worst quarter since the last time I had a BigMac....

Do NOT follow this link or you will be banned from the site!