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Apple Enters Gravtitational Singularity As Hedge Fund Hotel Evacuation Begins

Tyler Durden's picture


AAPL had crawled it way into the green in the pre-open, bumping around yesterday's closing VWAP. In the early minutes of the US day session open, we saw very heavy selling volume in AAPL (and surprisingly S&P 500 futures ramped vertically). This smells a lot like someone getting a tap on the shoulder on their 'hedged' Long AAPL, Short ES position. AAPL bounced off yesterday's lows to get back to VWAP and then the real selling began... At $542 now, AAPL is over $160 off the highs and reverting back to the market cap of the entire European banking system. With 230 hedge funds holding this angel of death... small doors and large crowds do not mix... paging Topeka? Widows, orphans, and value investors first...



The Hedge Fund Hotel Evacuation...


and the reversion to Europe's banking sector...


and its not like we haven't seen this before - it is simply investor's anchoring bias is that this kind of move is unthinkable...


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Thu, 11/08/2012 - 11:27 | 2960453 VonManstein
VonManstein's picture

USD and SPX both showing weakness together. Heads up folks get you Phyz ASAP

Thu, 11/08/2012 - 11:30 | 2960466 monkeyboy
monkeyboy's picture

Rotten APPL

Thu, 11/08/2012 - 11:31 | 2960475 Manthong
Manthong's picture

When does the iPhone 6 come out?

Thu, 11/08/2012 - 11:34 | 2960493 poor fella
poor fella's picture

After the 5s, 5x, and 5-'liger'.

Thu, 11/08/2012 - 11:37 | 2960519 redpill
redpill's picture

What happens when an apple is exposed to the vaccum of space?

Thu, 11/08/2012 - 11:45 | 2960558 monkeyboy
monkeyboy's picture

Not sure have you asked Siri?

Thu, 11/08/2012 - 11:56 | 2960614 redpill
redpill's picture

Siri isn't talking to me after the argument we had last night.  Ever since September 21 or so she's been a real bitch.

Thu, 11/08/2012 - 12:01 | 2960644 Richard Chesler
Richard Chesler's picture

It's not a loss if you don't sell.

Thu, 11/08/2012 - 12:22 | 2960726 Upswaller
Upswaller's picture

Anyone seen Robotrader?

Thu, 11/08/2012 - 13:03 | 2960865 El Viejo
El Viejo's picture

"I slaughtered this mule last Thursday and I think she's startin to turn." Oh Brother Where Art Thou?

But check out the election induced fever below:


Thu, 11/08/2012 - 11:48 | 2960579 dogbreath
dogbreath's picture


Thu, 11/08/2012 - 11:42 | 2960497 monkeyboy
monkeyboy's picture

Not soon enough to save the world's economy, bring an end to poverty, stop climate change, over-population, war, unicorns...

Sorry, what do you mean it's just a phone?!?

Thu, 11/08/2012 - 11:34 | 2960502 Enslavethechild...
EnslavethechildrenforBen's picture

The laws of physics are stronger than fantasy, dreaming and wishes

Thu, 11/08/2012 - 11:41 | 2960531 JPM Hater001
JPM Hater001's picture

Sometimes they do end badly for our hero.

Thu, 11/08/2012 - 12:15 | 2960691 Stock Tips Inve...
Stock Tips Investment's picture

Apple is a great company whose shares are plummeting. The market is also falling. And it seems to continue down. There may be an appreciation that AAPL has risen too much too quickly and is beginning to correct. This obviously does not help the recovery of the market and less in the case of the Nasdaq. I think the government and the Fed are in trouble. How will they react?

Thu, 11/08/2012 - 12:31 | 2960777 slyhill
slyhill's picture

Ctrl + P?

Thu, 11/08/2012 - 13:43 | 2961111 SilverDosed
SilverDosed's picture

LOL "Starting to correct"

Where have you been the last few weeks?


Thu, 11/08/2012 - 11:31 | 2960480 Go Tribe
Go Tribe's picture

The retail Apple-loving investors are getting crushed.

Thu, 11/08/2012 - 15:49 | 2961692 BeetleBailey
BeetleBailey's picture


Thu, 11/08/2012 - 11:41 | 2960532 CharlieSDT
CharlieSDT's picture

Quick, ObamIphones for everybody!

Thu, 11/08/2012 - 11:28 | 2960454 fuu
fuu's picture

We're going to need more roaches.

Thu, 11/08/2012 - 11:28 | 2960456 ZDRuX
ZDRuX's picture

Someone turned on the light, and the roaches are scrambling.

Thu, 11/08/2012 - 12:14 | 2960689 SillySalesmanQu...
SillySalesmanQuestion's picture

Wow...look at them run away! This may be your only chance......stomp em (SQUISH).

Thu, 11/08/2012 - 11:28 | 2960460 Spastica Rex
Spastica Rex's picture

Don't sell, buy. Selling is what they want you to do. This is the chance of a lifetime to become a billionaire - almost overnight. I mean it.

Thu, 11/08/2012 - 11:29 | 2960464 piliage
piliage's picture

MDB, is that you?

Thu, 11/08/2012 - 11:31 | 2960478 Spastica Rex
Spastica Rex's picture

No, I'm sardonicsonofabitch_ (SSOB).

Thu, 11/08/2012 - 12:15 | 2960695 piliage
piliage's picture

So is MDB :-)

Thu, 11/08/2012 - 12:18 | 2960706 Spastica Rex
Spastica Rex's picture

No, he's just boring.

Thu, 11/08/2012 - 11:30 | 2960471 bania
bania's picture

... assuming you start with a trillion.

Thu, 11/08/2012 - 11:33 | 2960486 dwdollar
dwdollar's picture

No need to do anything. We're all going to be billionaire's soon.

Thu, 11/08/2012 - 12:06 | 2960660 pods
pods's picture

If all the FRNs sloshing around the world come home, kids with lemonade stands will be billionaires.


Thu, 11/08/2012 - 11:29 | 2960463 youngman
youngman's picture

How is Samsung doing...

Thu, 11/08/2012 - 11:37 | 2960515 HelluvaEngineer
HelluvaEngineer's picture

"Apple’s iPhone 4S (NASDAQ:AAPL) is no longer the world’s best-selling smartphone. For the first time ever, Samsung (PINK:SSNLF) has taken that title with its massively successful Galaxy S III model.

Read more:
Thu, 11/08/2012 - 11:38 | 2960525 youngman
youngman's picture

(Reuters) - Samsung Electronics' <005930.KS> Galaxy S3 became the world's best-selling smartphone model last quarter, pushing aside Apple Inc's (NSQ:AAPL) iPhone, which has dominated the chart for more than two years, research firm Strategy Analytics said on Thursday.

Strategy Analytics estimated Samsung sold 18 million S3 models in the third quarter, compared with iPhone 4S sales of 16.2 million.

Thu, 11/08/2012 - 12:02 | 2960647 machineh
machineh's picture

Amazing how that Apple-patented breakthrough of a 'rectangle with rounded corners' makes phones just fly off the shelf! /sarc

Apple's desperate, sleazy patent trolling last summer called the top.

Thu, 11/08/2012 - 15:17 | 2961521 Nobody For President
Nobody For President's picture

Absolutely fucking right!

Thu, 11/08/2012 - 12:17 | 2960703 Lendo
Lendo's picture

I love my Samsung GSIII.  Android is so much better an iOBS and the consumer is finding this out.

Thu, 11/08/2012 - 12:40 | 2960824 exi1ed0ne
exi1ed0ne's picture

Cyanogenmod FTW!

Thu, 11/08/2012 - 11:30 | 2960469 Shizzmoney
Shizzmoney's picture

Oh dear God plz crash......

Thu, 11/08/2012 - 11:51 | 2960590 aerojet
aerojet's picture

Yes--it's time the AAPL fanbois get their comeuppance.  Reality is that Apple produces geegaw toys that don't do anything better than their Android equivalents except marketing and hype.  The smartphone and the tablet are on their way to being a commodity item, in the same fashion that Apple had an early lead in the rich GUI-enabled desktop computer, the competition soon caught up and eclipsed them in price and value, leaving only the diehard fanboy types to carry the flame.  We're just about there again.  And Jobs is still dead.

Thu, 11/08/2012 - 13:13 | 2960972 Shizzmoney
Shizzmoney's picture

Look on the bright side: Foxconn is working with US Manufacturers to assist them in making US factories more like theirs.

If that's the case, we might finally start to make headway in lowering the 12-14 year old unemployment rate.

Thu, 11/08/2012 - 21:50 | 2962942 NachoLiebor
NachoLiebor's picture

Not gonna work. They won't be allowed to beat their employees.

Thu, 11/08/2012 - 11:31 | 2960474 slaughterer
slaughterer's picture

Need a close above $556 to confirm some technical support.  Otherwise, $530 easily tomorrow.  

Thu, 11/08/2012 - 11:42 | 2960542 JPM Hater001
JPM Hater001's picture

I would wet my pants if you could make that last part happen.

Thu, 11/08/2012 - 11:59 | 2960632 slaughterer
slaughterer's picture

JPM Hater001: Wish I could make it happen, but I cannot short anymore given my margin limits.

Thu, 11/08/2012 - 11:32 | 2960479 Dr. Engali
Dr. Engali's picture

If you liked it at $700.00 you're going to love it at $542.00 Should I put you down for 500 shares or do you want to play with the big dogs and buy 1000?

Thu, 11/08/2012 - 11:36 | 2960507 Everybodys All ...
Everybodys All American's picture

yeah ... put your buy if you like the market still at $530. Good support there. If it breaks that level get out of the way quick.

Thu, 11/08/2012 - 11:37 | 2960516 geoffr
geoffr's picture

Actually, I would like to buy. Even with slower growth, the fundamentals of this company are much better than this price. I'm in for getting more stock. More gold too.

Thu, 11/08/2012 - 11:41 | 2960533 John Law Lives
John Law Lives's picture

Don't bank on "fundamentals" moving the price up or down.  Momo trading by the big boys can crush individual investors.  Tread lightly.

Thu, 11/08/2012 - 12:25 | 2960749 geoffr
geoffr's picture

That applies to any investment, including gold. What other choice do I have besides investing based on fundamentals? I'm not smart enough or good enough at timing to do momentum trades.

Thu, 11/08/2012 - 16:26 | 2961819 John Law Lives
John Law Lives's picture

Physical gold and silver (for example) have tangible value.  A sheet of paper can simply be duplicated to beget more sheets of paper with the effect of diluting the "value" of the original sheet of paper.  That applies to fiat currency and stock certificates.

Thu, 11/08/2012 - 11:38 | 2960524 Spastica Rex
Spastica Rex's picture

Dr. --

Let me call the loan officer at my credit union and see how much I can put together.

-- Baldrick

Thu, 11/08/2012 - 11:54 | 2960605 aerojet
aerojet's picture

Right, it's a great time to lever up.

Thu, 11/08/2012 - 12:14 | 2960687 youngman
youngman's picture

Get some student loans..that is easy..throw in a car loan too...

Thu, 11/08/2012 - 11:43 | 2960547 Antifaschistische
Antifaschistische's picture

Bingo Engali,

I can tell you've been reading up on Suzie Orman, yes, as long as everyone dollar cost averages their appl'z they'll be fine.   Everyone just needs to keep buying to lower their average.


Thu, 11/08/2012 - 12:19 | 2960717 resurger
resurger's picture


going down:



Thu, 11/08/2012 - 11:33 | 2960487 forwardho
forwardho's picture

As Cog D posted in earlier thread, 230 stood the line, and then were gone.

Thu, 11/08/2012 - 11:33 | 2960488 Madcow
Madcow's picture

Unavoidable Hyper-Deflation 

"Poof" - fiat money disappears when it is no longer voluntarily borrowed into existence. 



Thu, 11/08/2012 - 11:55 | 2960611 aerojet
aerojet's picture

Actions have consequences, and re-electing the Fast & Furious Administration full of incompetents just becaue they give out Free Shit (TM) like Santa is going to hurt bad.

Thu, 11/08/2012 - 11:33 | 2960491 SheepDog-One
SheepDog-One's picture

Bloomie financial news says this is all due to 'angry white men'....unfuckinreal.

Thu, 11/08/2012 - 11:50 | 2960585 Freewheelin Franklin
Freewheelin Franklin's picture

Hey, it costs money to keep your white women hidden for four years.


Thu, 11/08/2012 - 11:34 | 2960494 slaughterer
slaughterer's picture

It is a trading at less than 10x forward earnings for 2013.  (Tyler will mock me for that in 3,2,1... I know).

Thu, 11/08/2012 - 11:56 | 2960495 Jason T
Jason T's picture


Thu, 11/08/2012 - 11:35 | 2960504 slaughterer
slaughterer's picture

What is especially telling is this happening around the ex-div date.  

Thu, 11/08/2012 - 11:35 | 2960505 ebworthen
ebworthen's picture

Are people just now realizing that the Copernicus of Cupertino Steve Jobs has passed on?

The first indicator is the mini-iPad; going against the wishes of Jobs, priced too high to woo Kindle buyers, too low to continue the profit miracle.

Apple also losing market share in the mobile market to Android phones.

Is AAPL stock worth something?  Sure, ~$157 a share.

Thu, 11/08/2012 - 11:37 | 2960518 SheepDog-One
SheepDog-One's picture

I liked my iPhone it was cool, my new Android beats the shit out of it though no question about it.

Thu, 11/08/2012 - 11:41 | 2960539 Yen Cross
Yen Cross's picture

Samsung has already sold 30m GalaxyS llls. S/D-O

Thu, 11/08/2012 - 11:36 | 2960509 Yen Cross
Yen Cross's picture

 Where are the CNBS circus clowns, doing the BTFD in AAPL infomercial. Looks like Cramer bolted out of there to sell off 50% of his charitable trust that probably consists of AAPL.

Thu, 11/08/2012 - 11:41 | 2960530 fonzannoon
fonzannoon's picture

They are waiting for fast money to bring out a bunch of these guys who hold massive shares. They will be impartial I promise.

Thu, 11/08/2012 - 11:43 | 2960544 Yen Cross
Yen Cross's picture

 Hows ya doing with that Noreaster Fonz. Is everything still shitsville?

Thu, 11/08/2012 - 11:48 | 2960578 fonzannoon
fonzannoon's picture

Good man thanks. I got lucky. It's all screwed up around here. I got away a lot better than most.

Thu, 11/08/2012 - 11:36 | 2960514 Quinvarius
Quinvarius's picture

The 5 year trend is at about 450. 

Thu, 11/08/2012 - 12:55 | 2960903 edifice
edifice's picture

Agree; I've been telling fanboys it'll drop to low $400's for weeks, now, on different boards. They're still hanging on, to the bitter end.

Thu, 11/08/2012 - 11:37 | 2960520 scatterbrains
scatterbrains's picture

Where my I-crack nig....   oh never mind I see them..  all stuck in the exits..  ewww  but lets hope bernank can manipulate the vix lower so we don't face a margin avalanche.

Thu, 11/08/2012 - 11:41 | 2960534 youngman
youngman's picture

I just hope this means they do not talk about it 24/7 on Bloomberg and CNBC.....

Thu, 11/08/2012 - 11:41 | 2960540 slaughterer
slaughterer's picture

This is all because of weak-hand Rochedale...

Thu, 11/08/2012 - 11:42 | 2960541 ebworthen
ebworthen's picture

Wow, down from -1.69% to -2.00% in just the past five minutes.

Look out below!

Thu, 11/08/2012 - 11:43 | 2960546 alien-IQ
alien-IQ's picture

Meanwhile, GOOG is about $6 away from going negative for the year.

Thu, 11/08/2012 - 12:47 | 2960857 Zero Govt
Zero Govt's picture

Reggie's been sitting at the station waiting for the GOOfy Express to take off for 2 years and the train's now engaged reverse???

you don't wanna be the train cleaning crew after he's had an epileptic fit in there!!!


Thu, 11/08/2012 - 11:44 | 2960552 philosophers bone
philosophers bone's picture

Reggie's smiling somewhere.

Thu, 11/08/2012 - 11:47 | 2960568 alien-IQ
alien-IQ's picture

only if he's ignoring GOOG share price.

Thu, 11/08/2012 - 13:06 | 2960890 Zero Govt
Zero Govt's picture

if the Apple juggernaut laps him a second time on the next up-draft i fear for Reggie's sanity

..he's already wearing a Ronald McDonald outfit and bleeding from the nose throwing boomerangs that keep coming back to knock him off his one-legged wheezing nag GOOfy high horse

hope there's a Doctor .......padded wagon .........padded cell ....handy!

Thu, 11/08/2012 - 11:44 | 2960553 orangedrinkandchips
orangedrinkandchips's picture




Thu, 11/08/2012 - 13:03 | 2960916 Zero Govt
Zero Govt's picture

let's put some music to that..

Thu, 11/08/2012 - 11:45 | 2960556 slackrabbit
slackrabbit's picture

Everyone thought Apple was the centre of the Galaxy and it was.

Pity the concentrated only on the super novo's and not on the many black holes that are also there.

Thu, 11/08/2012 - 11:45 | 2960557 Dr. Engali
Dr. Engali's picture

I think I'll go antagonize the fanboys on the yahoo board.

Thu, 11/08/2012 - 11:59 | 2960633 HD
HD's picture

Please let us know how many times they tell you the sell off is okay because they are a "long term investor"...


Thu, 11/08/2012 - 11:46 | 2960562 Ignatius J Reilly
Ignatius J Reilly's picture

Just got an email from Apple.  New Mac Book!  All is well. /sarc


I don't ever remember getting an email from them before...

Thu, 11/08/2012 - 11:47 | 2960565 Spastica Rex
Spastica Rex's picture

I just read on the San Francisco Chronicle that probably one of the reasons that Apple's stock is going down is because the demand for their products is too high. I'm sure glad I read that, because from the standpoint of an idiot like myself, it seems counter intuitive.

Thu, 11/08/2012 - 11:56 | 2960619 a growing concern
a growing concern's picture

That's probably why Ruger is getting slammed also. Oh, wait...

Thu, 11/08/2012 - 13:07 | 2960957 NotApplicable
NotApplicable's picture

Well, that's "too high" relative to the number of non-suicidal FoxConn workers needed to produce them.

Honestly, they should just turn the empty Apple stores into "Custom iAssembly Outlets" and let the fanbois build their own. Promote it enough and hey, they may be willing to pay more for the experience!

Thu, 11/08/2012 - 11:53 | 2960592 virgilcaine
virgilcaine's picture

Dick Bove and Rochdale was the first "roach" exterminated. Enjoy your stay at the motel.

Thu, 11/08/2012 - 11:53 | 2960602 FubarNation
FubarNation's picture

Harbinger of death.  Canary in the coal mine.  Fat lady.


My gut tells me the whole fucking thing is about to go code FUBAR.

Thu, 11/08/2012 - 12:24 | 2960734 Mad Mohel
Mad Mohel's picture

To quote a famous asshole, "Bring it on!"

Thu, 11/08/2012 - 11:54 | 2960604 scatterbrains
scatterbrains's picture

I'm wondering how many of Bernanks bathhouse buddies have been hyper leveraging via writing put options (which has worked since 666)  so long as Bernank promises to back stop them via nyfed /es buying... and what happens if VIX doubles, which cyclically you might expect from now into the next few weeks ?

Thu, 11/08/2012 - 11:56 | 2960618 HaroldWang
HaroldWang's picture

Gotta believe this will happen to AMZN in the near future and cut that 300 p/e stock in half.

Thu, 11/08/2012 - 12:00 | 2960641 Frank N. Beans
Frank N. Beans's picture

where IS robotrader anyway??

Thu, 11/08/2012 - 12:06 | 2960661 Dr. Engali
Dr. Engali's picture

He got thrown out on to the front porch.

Thu, 11/08/2012 - 12:21 | 2960719 FubarNation
FubarNation's picture


Thu, 11/08/2012 - 12:04 | 2960655 forwardho
forwardho's picture

Bank of england announcing that it is suspending its QE efforts because of questions relating to its "potency" How dare they allow themselves to run out of Koolaid, The "game" only works when everybody plays.

Thu, 11/08/2012 - 12:28 | 2960752 Zero Govt
Zero Govt's picture

my 260 emails calling them "economically retarded" finally got through to Board level then

well done Mervyn, only good call in 20 years but at least you made ONE

Thu, 11/08/2012 - 12:19 | 2960676 virgilcaine
virgilcaine's picture

The steepness of the drop and it's lofty height should tell you.. it's gonna be nasty. With the Dow-doggie at multi yr highs as well. Went short again next support is a long way...2544 on the Nas-doggie.!

Thu, 11/08/2012 - 12:13 | 2960682 Winston Churchill
Winston Churchill's picture

Sad and predictable end of 'the toy story' of our time..

Thu, 11/08/2012 - 12:19 | 2960692 Zero Govt
Zero Govt's picture

the Apple and Euro Banks chart just shows the markets can remain insane longer than sane people can stand the insanity

Apple massively profitable, professionally managed par excellence, productive, cash mountain, rising brand value and loved by their customers

Eurobanks massive losses, unproductive and totally inept executives, debt mountains, collapsing brands and depositors stampeding for the Exits

still it's all about timing ...BTFD, sell the hopeless Euro dipshits on the delusional high


Thu, 11/08/2012 - 12:20 | 2960715 Overflow-admin
Overflow-admin's picture

Just back to the laws of physics. Apples do fall!

Thu, 11/08/2012 - 12:23 | 2960731 ebworthen
ebworthen's picture

The opposite of a parabola is a hyperbola; and that's not hyperbole.

Thu, 11/08/2012 - 12:29 | 2960767 Spastica Rex
Spastica Rex's picture

I think you're exaggerating.

Thu, 11/08/2012 - 12:31 | 2960784 Jim B
Jim B's picture

It's a bubble........ Until it's not!!!

Thu, 11/08/2012 - 12:32 | 2960762 virgilcaine
virgilcaine's picture

It's the great levarege unwind, "Bove and co." was levareged 100x1 i believe. this could get ugly.

The Margin clerks are busy..no2 pencils are sharpened.

Thu, 11/08/2012 - 12:31 | 2960776 Roger Knights
Roger Knights's picture

This drop is so sharp that it looks like the sellers KNOW something. Could it be that Apple has lost its chance for a China Mobile contract, and word has leaked out?

Thu, 11/08/2012 - 12:33 | 2960791 SillySalesmanQu...
SillySalesmanQuestion's picture

Look ma! It's Helicopter Ben to the rescue. He is here to save the day! Wait, those are'nt FRN"s coming out... they're shit sandwiches....

Thu, 11/08/2012 - 12:40 | 2960827 SokPOTUS
SokPOTUS's picture

"Sell it.  Sell it all."

Thu, 11/08/2012 - 13:07 | 2960829 SokPOTUS
SokPOTUS's picture


Thu, 11/08/2012 - 13:02 | 2960937 devo
devo's picture

I thought this would happen, but I figured it would be after next quarter due to strong seasonal earnings. With the mini and iphone getting meh reviews I guess it makes sense to get a head start.

Thu, 11/08/2012 - 13:12 | 2960970 Grand Supercycle
Grand Supercycle's picture

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

Unfortunately longs will be badly burnt.

Thu, 11/08/2012 - 13:30 | 2961037 Taffy Lewis
Taffy Lewis's picture

Paging Topeka?

I'm here in Topeka. It's turning out to be not such a bad place. The conservative Repubs are close to a super-majority, are hell-bent on cutting taxes, and they can't start any wars:


Thu, 11/08/2012 - 13:28 | 2961050 Fix It Again Timmy
Fix It Again Timmy's picture

Quick, Apple needs Captain Whitaker.  "Move aside, Mr. Cook, let me handle her..."


Thu, 11/08/2012 - 14:01 | 2961206 Overflow-admin
Overflow-admin's picture

AAPL monthly MACD looks ready to print some nasty sell signal ^^

Thu, 11/08/2012 - 14:34 | 2961340 falak pema
falak pema's picture

who would have thought the HFs choose between Apple and .....Euro! 


Thu, 11/08/2012 - 14:56 | 2961436 Reptil
Reptil's picture

first the mini iPad and now this? Steve must be turning in his grave. </sarc>

Fri, 11/09/2012 - 03:52 | 2963633 Weyland_Yutani
Weyland_Yutani's picture

The P/E is still on the low side for such a huge company.

Why are more people worried about Apple than for example Amazon?

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