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.

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CPL's picture

250 enter!!

1 company leaves!

AlaricBalth's picture

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

Monty Python - Arthur vs. The Black Knight

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..



The trend is your friend's picture

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

Trading Places 

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'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..


The Wizard of Oz's picture






CPL's picture

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


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.....

FL_Conservative's picture

Better find a seat when the music stops.

Downtoolong's picture

250 enter!! 1 company leaves!

And then they can play with themself.

Won't that be fun to watch?

Lost Wages's picture

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

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...

malikai's picture

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

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.

malikai's picture

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

fonzannoon's picture

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

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.

Mark Wilson's picture

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

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.

Mark Wilson's picture


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.

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...

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..

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.   

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.

Temporalist's picture

Fed:  Amazon?  They sell printers right?

jaap's picture

Criminals shorting gold now....

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.

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 one has turned the corner...everyone is still printing and has to do more...

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...

The Shootist's picture

Peanut Butter Jelly Time!

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.

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."

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.

Ineverslice's picture



Goog in front at check out line.

The Shootist's picture

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

Atlasshruggedme's picture

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

You decide!

tocointhephrase's picture


Edit: Nice 1 month down trend weeeeeeeeeeeeeeeeeeeeeeeeee

MiddleageThinninghair's picture

How about crAAPLfornia?

nmewn's picture

And...Dow at's well, carry on mates.

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


Ineverslice's picture


very eery, how orderly this is.


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 ;-)

virgilcaine's picture

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

soopy's picture


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.

slaughterer's picture

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

fonzannoon's picture

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

Osmium's picture

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