Stocks Slammed As Apple Tumbles: Yesterday's Rally In Tatters

Tyler Durden's picture

What a roundtrip!

After starting off November with a bang, and after nearly retracing all October losses in the aftermath of the NFP headfake in less than 2 trading sessions, the S&P futures literally imploded, and dropped 23 points from the intraday high, the same distance traveled as, only to the downside and on very strong volume for the second day in a row.

While the 1400 support in ES is once again in play (ES closed literally on the lows of the session at 1405.5), as we suggested earlier, the far more ominous news is that the AAPL bubble appears to have popped (but, but, it is so cheap on forward multiple basis: guess what - forward multiples are based on forward earnings, which may very well never materialize! and thanks to the dividend, not even AAPL's cash hoard is the bastion it one was) and is now close to entering bear market territory, down just shy of 20% from its all time highs of $705.07 hit on September 12. Now with the 200 DMA taken out, the next support is the 20% retracement from the high which is at $564. After that it is freefall for a long time as a very deep gap needs filling. It is unclear just how much of the selling was there to cause max pain for Dick Bove and Rochdale, for whom every tick lower in the stock means a bigger margin call.Finally, news hitting literally seconds ago that MSFT may be launching its own phone if its partner strategy falters, means there go even more margins.


And multi-asset:

But it was not only AAPL: nothing was spared as gold, the EUR, Crude, and virtually every other asset class collapsed as a result of what started as a broad-based selloff, reinforced by dollar strength, and them accelerated as various hedge funds were hit by margin calls.

And what is likely worst for risk is that various Fed presidents spoke and promised more, more, more QE and.... nothing. The market no longer cares about promises of future QE, which is exactly as we said would happen: the Fed has now shot itself in the foot, or more accurately, priced itself out of the market as there is no further element of surprise left! When it was in its promises phases, it was easy. Now that it has shifted to real action, it has little actual market driving capacity.

As for the final leg of the central bank stool to be kicked out, will be when Spain finally throws in the towel and forces the ECB to also shift from talk to action on endless monetization. At that point it will be time to get out of all paper assets as the exponential monetization phase will be unleashed.

So enjoy the weekend: all the pre-election good news has now come and gone. Monday and Tuesday are limbo days, and then on Wednesday we all wake up to the reality of America's busted political system, and a broken and insolvent Europe. Then things really get fun.

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blunderdog's picture

All I want for Xmas is a discount sale on gold...

THX 1178's picture

I don't think we'll make it that long.

economics9698's picture

The mask comes off November 8th.  Lock and load, conceal carry. 

Shizzmoney's picture

We all WISH it would...but it won't.  Black Friday/XMas sales of crap made in China will carry the DOW through the end of the year, along with the beats the NFP numbers bring along with it.

Q2 and Q3 of 2013 is when shit REALLY shit the fan.  Q1 maybe spared as companies who product sold above the mean will hold the DOW up like a drunk walking out of a bar...but eventually, the drunk will fall over, hit his head, and spew chunks all over the American economy (fiscal cliff, withstanding). 


redpill's picture

I'm tired of all these people in New York whining just because they don't have luxuries like food, water, or heat.  Don't these crybabies realize there is a REAL emergency going on?  AAPL is down 3% for god sakes!




Winston Churchill's picture

Not in the CPI, so they are obviously non essential.

Thought thos swaggering Yankees were tough.

A legend in their own minds ,no less.

Excuse this adopted Southerner for pointing it out,

Had no power for three weeks after Wilma.

Five days , Suck it up.

Whatever doesn't kill you,makes you stronger.

Precious's picture

What the fuck do people expect from Apple.  The supply chain genius Tim Cook is suing his key supplier, Samsung.

Probably Samsung is so pissed with the fraudulent San Jose jury verdict for +1 Billion (while the UK meanwhile tells Apple to apologize), that Samsung will be perfectly happy providing touch screens to Google instead of Apple.  Dumb Apple fucks.  Lets also fire one of our key employee innovation leaders, Forstall.  Hey.  All you Wall Street pussies at Goldman Sucks etc, born with dad's money, never set foot in a factory, and wouldn't know a function call or a circuit trace if it was stenciled on your forehead: you're welcome.  Hope you shorted Apple when I pointed this out last week.  By the way, Apple still has a long way to go.  And the market isn't going to like it when an appeals court reverses the idiotic design patent infringement verdict next year.

Bye Apple.  You had a nice run.  But you don't sue suppliers and expect to be loved.  Fools.

StychoKiller's picture

Hmm, kinda like SCO threatening to take all their customers to court for using Linux.  Where's that Polish target pistol? :>D

TWSceptic's picture

Apple does not need Samsung, and he got fired for doing a terrible job at maps and not wanting to take responsibility for it and apologize. This is just a healthy predictable correction for Apple. I do agree there is much more competition out there, and without Jobs the company may not be as strong as it used to be.

GetZeeGold's picture



Practically everything I own is made by made by's pretty good stuff.

Precious's picture

TW.  You don't know that for a fact.  STFU.  Scurrilous press lemming POSJ.

TWSceptic's picture

Sorry I forgot you do know all the facts.

Precious's picture

STFU you stupid press parrot.  

Isn't there a chapter somewhere in your Torah that prohibits spreading lies about people?

Monedas's picture

Don't let the left define our culture:  Think twice before using many leftist twisted words and phrases:  i.e.    Black Friday, Xmas, Scalping, Price Gouging !  Really, how do you "gouge" with a price ?

Winston Churchill's picture

November 5th is Guy Fawkes night .

May the explosions begin.

blunderdog's picture

Let's hope the folks in NY/NJ stocked up on gas for the Molotov cocktails.

I wonder if the cops would give me a hard time if I stood on line at a gas-station with a bunch of glass bottles with rags in 'em.

Mark Carney's picture

TD that was very poetic like, well read and though out.  Have a great weekend all, time for some beer, strong beer.

mayhem_korner's picture



Wouldn't be shocked if margin calls from turday's crash create a penultimate $40 discount on "the yellow metal" on Monday.

malikai's picture

I'm hoping for a $40 discount on "the silvery metal"..

I'll be hoping for a while..

spastic_colon's picture

markets are pre-pricing an obummer victory

jdelano's picture

After a long hiatus I return to posting just to tell you all, thank you.  For the past several years I have struggled and despaired on a daily basis as I interact with literally not one person in my daily life who understands that the two-party system is a sham or recognizes that the financial system is at some point in our forseeable lifetimes going to hemmorrhage to an extent that permenantly devasates our quality of life.  I have ranted and raved, accomplishing absolutely nothing, and watched ostensibly smarter, more accomplished and knowledgeable men like Mike Bloomberg carry on with a blase disregard for the actions of the White House and the Fed as though everything is hunky dory.  This has caused me to constantly question my sanity, at times drawing very near to the conclusion that I am, in fact, mentally deranged and should probably kill myself.  But every time that I have gotten out the bath salts and the luger, I have on last minute impulse come here for one final departing dose of Durden, and each and every time, I have found my salvation in this observation:  the comments here, even when filled with rage and vitrol for each other, are on average roughly 1000 standard deviations more clever, erudite, and articulate than on any other site I've chanced upon in my post-porn session wanderings of the internet.  This I take to mean that the smartest people in the country (and abroad) are all united at least by the common understanding that beneath the MSM veneer, this economy really is well and truly fucked.       

taraxias's picture

LOL.....rant of the day. Well done !!!!

GetZeeGold's picture



Screw the world amigo.....just buy some gold and relax.

MachoMan's picture

But every time that I have gotten out the bath salts and the luger

Are you trying to become a zombie?

Monedas's picture

You can be my first suicide .... if you want .... just spell Monedas right !

StychoKiller's picture

Have you read:  "The Creature From Jekyll Island, a Second Look at the Federal System",
5th Ed., G. Edward Griffin, ISBN:  978-0-912986-45-6

Perhaps you should have some of yer aquaintances read just the first 30 pages...

Ruffcut's picture

I have cnbs muted and they are all laughing, smiling like it is all good.

Laugh and smile on , bitchezz.

Mesquite's picture

....and they are all laughing, smiling like it is all good...

Sounds like the last days of Rome....

Boilermaker's picture

Didn't crash more violently than silver.

How about mentioning it?

The Gooch's picture



There. it's mentioned.

Boilermaker's picture

Well, since the site goes to painful effort to explain WHY stocks move everyday and is a propoent of precious metals....I GUESS that it would be reasonable to address a 4.5% ass pounding in silver in 6 1/2 hours of trading.

redpill's picture

4.5% is not that unusual of a swing in terms of silver prices, which historically are very volatile.  Additionally, silver hasn't played the role of a massive momo hedge fund hotel over the last year.  Silver has been range bound between about $27 to $37 for the last 12 months, so the move today is not particularly remarkable especially given that other commodities had a down day.

However, the hotel crAAPLfornia is a very different story.  It nearly doubled over the last year, finally breaking an incredible $700 per share in September.  ALL the hedgies were piling in, it was their darling, groupthink to the max.  But if any of them had paid attention to this site, they would have taken notice that plenty of folks were correctly calling it as being way overbought, and that eventually the reality would sink in that Apple has stopped revolutionizing is only incrementally evolving their products, and that there was no way in hell they could maintain their current market share given increased competition out of China, and that the stories of underage Chinese "workers" killing themselves due to poor conditions would eventually permeate the hipster psyche and register as "not cool."


Boilermaker's picture

4.5% in a trading session is large.

redpill's picture

I didn't say it wasn't large, I said it wasn't that unusual.  If volatility scares you, you can always go buy some treasury bonds.

Boilermaker's picture

When is the last time silver moved 4.5% in a day?

I also didn't say I was scared of volatility. I said ZH didn't address the crash.

moonstears's picture

Recently, June 8th 2012, was 4%+ $29.35-28.25, again 21-22 June was down over 4.5 % according to KITCO, I knew it'd not been too long. Few days July too, methinks.

Can you say "man-nip-o-la-shun", bitchez??

Mesquite's picture

Just a little muscle tremor in the foot on the throttle of the big printing press(s)...

GetZeeGold's picture



.....and he still didn't buy any, Was holding out for the 9% that never came.

John Law Lives's picture

How many hedge fund managers just crAAPLed in their pants...


The Monkey's picture

I'm thinking to myself, what would I really pay to "own" Apple (i.e, not as a short-term trade for a bounce, or as a swing trade because it gets to the point where it is so oversold and beat down that profits will move it). I'm certain it's a sub $400 dollar number, the question is whether it is sub $300. I mean, once the shine is gone (the momentum), the margins aren't far behind. We've seen this story too many times. My guess is that it tanks until Tim Cook is fired & even when that happens, sooner than later but not soon enough, there is no way they will ever be the same company they were under Steve Jobs. Thanks Steve - you were one hell of a visionary, and the world will miss you.

samcontrol's picture

$436 is the mumber you are looking for, great buy at that level.

samcontrol's picture

$436 is the mumber you are looking for, great buy at that level.

The Gooch's picture

scattered all over Manhattan.

Bam_Man's picture

Pride and joy and greed and sex

That's what makes that town the best.

TeamDepends's picture

Don't you know the crime rate's goin


Ineverslice's picture


...this town's in tatters.

Manthong's picture

At least we still have our dirty dreams.

TeamDepends's picture

Down the memory hole.....