AAPL Death-Cross Pushes Dow To Highs

Tyler Durden's picture

Of course, it makes perfect sense - the largest market cap company in the world drops further and experiences a death cross and sure enough - the evergreen Dow Jones Industrial Average ended near the highs of the day - well north of the critical 'retirement-on' 13,000. In general risk-assets were quietly correlated with stocks today (amid relatively quiet volume on the major averages) but we note that the capital structure ETFs in general were less exuberant - though they did get a little bounce after the consumer credit data. All-in-all, the Dow stood alone in its non-AAPL exuberance as the rest of the market was mired in the sentment shift that is occurring (note the Dow saw ts 50DMA cross below its 100DMA and its closed perfectly intersecting with those averages). Must be the 'great' jobs number, right? Treasury yields end near their lows of the week, USD near its highs, Gold down on the week though at 3-day highs (supporting stocks), and high-yield credit weak today. Paging Skynet...

The S&P remained considerably more excited that credit/rates/vol today - though the latter did tend to keep pulling back up...

 

and the Dow's rise is very exciting for Pisani et al... but we wonder just what the machines were thinking when we see it close spot on its 50DMA, 100DMA and saw them cross each other in their own little death cross...

 

We hate to burst everyone's bubble (everyone being the herd of hedge fund managers who remain 'stuck') but there is only one reason why AAPL's stock is falling. Forget the fundamentals, its not about higher margins at a second-tier clearing agent, and it's not about arbitraging CNBC prognosticators. It's sentiment - plain and simple. The death crossing of the 50DMA below the 200DMA, while exciting and pretty to look at, merely reflects the shift from most loved to most hated as every manager who lauded the magical exponential rise is now talking it up while selling it down to reduce that over-weighting. An ugly end to an ugly week as we suspect the modest bid under the S&P remains due to the beta-hedged AAPL unwinds. WWJTD?

 

 

 

And the last 3 days - it is very clear that institutional selling is in play as VWAPs get hit and drop...

 

Charts: Bloomberg and Capital Context

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Ruffcut's picture

If you are not worth a shit then you rally. WHen you have value and actual fundymental worth, then just forget it.

The new world, where shit is really shinola.

Trying very hard not to step in it, but it keeps following me. 

CClarity's picture

The impulse of evolution is not small - but it doesn't happen all at once.  The "old ways" are trying very hard to hold the "norm" together but the change is coming.  To the financial system, TPTB, the tyranny.  Because evolution happens even when denounced.  

Rise up against patience.

FurZo's picture

Am I the only AAPL bear that thinks AAPL is overracting?

tbone654's picture

bears don't average down...  Sounds like you want too...

malikai's picture

Wow.. Way below the cross there.

Hardcore.

spastic_colon's picture

rotating out of AAPL into dividends for year end statement painting

boogerbently's picture

"Death Cross",

"Fiscal Cliff"......never mind.

ZerOhead's picture

A crAAPL a day keeps the bears away...

Calidreaming's picture

It doesnt matter-  all news is GOOD news!

 

the fucked up world we are in.

LongSoupLine's picture

another day of complete fucking corrupt bullshit being shit out the stinking ass of Bernanke and his fucking algos.

Everybodys All American's picture

take a look at CBMX today. Totally corrupt. Totally.

slaughterer's picture

Since when--in Bernanke's market--has a death cross been confirmed by a large stock sell off afterwards?

malikai's picture

It would be very telling if AAPL goes back to 700 from here.

It would be time to send out a search party to find RobotTrader.

They Tried to Steal My Gold's picture

It wouldnt surprise me at all if the Plunge Protection Team sets up the SPX Cash over 1425 and then unleashes the mother of all AAPL squeezes to launch the Index over 1475 and the NASDAQ to 3200.....

 

The Bernank ha said all along .....he wants higher stock prices...

 

Prior to the collapse to 5400.....

CPL's picture

When there are only 240 people holding it and attempting to not trip on each other.  Dancing with cement shoes in a crowded room.

 

At least nobody is really getting hurt by it, they'll just beg for more money and get it.

dirtyfiles's picture

right on

all those bearish technical formations where used to trap shorts and this is going now for about 3 yrs

but becouse of that no one is "investing" in this crooked casino

Freddie's picture

SkyNet runs the casino and the drones.

El Hosel's picture

Yeah,

The Federallies seem to like the H/S top to lure in the shorts - followed by the H/S Bottom to blast back up to "where the market belongs", you know, above 13,000.

 Tools of "the tools" you might say.

Yen Cross's picture

 Death Cross> wtf? It's common in currency trading/ We call it the golden cross ~ no matter which way the 50 & 200 day is converging/diverging.

  Shorting the trade still [sort of], exists in currency trading...

stant's picture

those 350k that quit looking for work are standing inline to get a iphone. reminds me of a john prime song

francis_sawyer's picture

Reggie... Reggie... Reggie...

~~~

Maybe you'll get a candy bar named after you...

PUD's picture

"death cross" is the most inane t/a ever dreamed up. There is no such viable thing and a study of all that have occurred reveals zero predictive power. I love the analysis here but you really should dispense with the voodoo...it is all meaningless irrational illogical babble and buzzword

spastic_colon's picture

careful Tyler(s) it appears the bernank/obummer mind control police have infiltrated ZH, they only want you to "think" it is meaningless irrational illogical babble and buzzword.

Wannabee's picture

Equity market: aka Calvinball

max2205's picture

Unless price collapses , it usually follows by a up move. It an early warning most of the time

MeelionDollerBogus's picture

Duh. That's what he said.

Unless it goes down, meaning, no predictive power. If it was predictive there is no "unless".

See this? THIS is predictive. Now you try:

2400 GOLD BY 2013 September

magpie's picture

Still no denials, rumors or news from the Greek buyback operation

VonManstein's picture

LOL great title. "nuff said"

SheepDog-One's picture

Big deal where the DOW closed today, hell we've been at 13,100 for months so what?

'Critical 13,000' yea whatever I was hearing the same at 12,000 and 11,000, etc.

Yen Cross's picture

 Good point SD-O.

Like santelli said, when asked about the 2-3 bps rise in T-10s. He replied " They closed .5 bps above last Friday...

SheepDog-One's picture

Yep, seems everyone today is examining the big picture mural with an electron microscope. 

John Law Lives's picture

On Dec 31, 1999, the DJIA had an adjusted close of 11,497.12.

On December 7, 2012, the DJIA closed at 13,155.13.

That is a whopping increase of approximately 14% in nearly 13 years.  Considering REAL inflation since then, that is not too impressive.

 

http://finance.yahoo.com/q/hp?s=%5EDJI&a=11&b=31&c=1999&d=11&e=31&f=1999...

rodocostarica's picture

Yeah and consider the changes in stocks in the DJIA since then to make it look even better. Losing proposition.

John Law Lives's picture

Considering the explosion of the federal debt level, the growth of the Fed's balance sheet, and the aforementioned decline in the value of the US Dollar since then, I would say it was FUBAR.

FUBAR.

disabledvet's picture

Certainly nothing to "rah rah" over...I agree. Just posted "the Dow is a Dog" at SA. The stupid money has crushed the pro's....again.

NotApplicable's picture

Meanwhile it generated who knows how much tax revenue from the any retail investor who "won."

Lord Of Finance's picture

Yeah, yeah. I believe this bear market started in 2000 in terms of gold valuation. Either way, its a long term bear market we are in, and when you look at the past bear markets of the 20th century, at the end of the bear market all principle was in the negative and took many years afterwords to get back to even after inflation adjustments.

chancee's picture

More like xlf hedged...

Or maybe it's just the 10th attempt in 3 years to try and convince everyone the financials are a bargain.

dirtyfiles's picture

only golden cross accepted no death cross WTF?

Yen Cross's picture

 When you can short the markets without a permanent {Fed. put} on them, everything is golden...

fuu's picture

Here's to next week and the Fed meeting.

sessinpo's picture

Another bad post by TD where one erroneously claims if B happens after A and C results, then B must be the cause of C.

 

Since when was Apple a component of the DJIA? Never.

Okay, so you want to use the argument that people fleeing Apple are going to the Dow. But they could also flee to other assets. Debunked.

And I post this as not being an Apple fan. I think Apple and the Dow are overpriced. I just go after non logical thinking.

 

 

The Master's picture

If you've been following the markets for the last two years (which, judging by your post, it doesn't seem you have), you will have noticed that on the days in which AAPL saw huge ramps, the entire market was lifted upwards.  However, now that there is heavy institutional selling, TPTB is having a harder time lifting AAPL.  So what do they do?  Keep Dow lifted instead.  That is the gist of what the Tylers are saying.  I know it's tough to follow but keep trying.

samcontrol's picture

it also means you had to be bullish the last two years.

MeelionDollerBogus's picture

My following is that AAPL doesn't quite correlate to the QQQ / NASDAQ but it is closer to QQQ than anything else, and QQQ correlates to SPY some of the time - visibly clear patterns using log-scale each axis. Try QQQ x-axis (common) and for the Y-axis left try AAPL and right try SPY. See the pattern emerge.

This is NOT lifting the DOW. The DOW is being lifted in a large way from multiple shots while the QQQ is being lifted BECAUSE of the Dow and dragging its big components with it - until APPL truly looked like crap & GOOG had their mid-trading-day fuckup which simply had NO repair possible at that point.

BlackholeDivestment's picture

...Life Cross of our Father in Christ is King.

Rathmullan's picture

Kevin can't be bothered with such realities. Is only job is to keep the masses thinking tht they are missing out on a great bull market by manipulating the only market index that the masses believe to be relevant.