Must. Defend. $500

Tyler Durden's picture

Just like Friday, there was virtually nothing notable to speak of in today's trading. The one catalyst that pushed stocks higher: all stocks, not just the one that may or may not be in play, was the DELL LBO rumor, that prevented the DJIA from going red on the day and pushed the 30 stock average well above the red, even if the S&P500 was not quite so lucky. As for what really mattered today, it is summarized in two words: "AAPL" and "$500." After breaching $500 briefly in the early trading session, the end of trading saw a concerted selling effort in the one stock most heavily owned by the hedge fund community, yet no matter how close it got to breaching $500, and sending the company into who knows what stop loss tailspin, someone kept buying just above $500  thereby preventing the uber levered hedge funds from having to start liquidating holdings to meet margin calls.


And yes, ES, controlled entirely by algos, ended up closing right at VWAP:

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Aguadulce's picture

Braeburn Capital, Bitchez.

ACP's picture

When does Bernanke have enough shares to buy a seat on the board?

TideFighter's picture

Waddapple & Reedomac fat finger. thought they were gone.

kaa1016's picture

I bought more puts. I wouldn't be surprised at all if this thing tests $450 before the week is done. It was obvious they were trying to hold $520 on Friday and look how well that worked out. It was $500 today. If it gaps down tomorrow on huge volume, I'm selling those puts.

michiganmaven's picture

right idea but I think your time frame is too fast... a quick drop to $450 would force mass panic in hedge funds and we all know Bernanke will not allow that cause he has run out of Boxerbriefs to take a shit in during this "recovery"....

kaa1016's picture

You're right, I may be a bit aggresive but the amount of people still long and in denial, who haven't capitulated yet, could make that happen faster than anyone thinks. A more probable scenario is $450 by next Friday. I bought the $500 puts that expire this week last Friday and sold them this morning and bought the $475 puts 5 minutes before the close. We'll see how that trade turns out...

James_Cole's picture

$450 is much too agressive on the weeklies. The $500 on Friday was a big win though!

$450 next friday if the earnings are bad. Seems risky going into that naked.

Xibalba's picture

took the other side.  

HoofHearted's picture

Take both sides. This is going to become a pink sheet favorite. It has all the same "pump and dump" or rumor-trading characteristics that all those penny stocks have.

Yes, I have an iPod. Well, my wife does. I have a cheap ass MP3 player that works just as well.

HedgeAccordingly's picture

Interesting .. $RIMM ramped into closing print as $AAPL defended 500 - overlay them 1 year

adr's picture

Sprint announced today that they would be carrying BB10 devices, part of the catalyst driving RIMM higher.

If you haven't died laughing yet, you should check out more leaks of the BB10 interface and feature phone.

What looks to be a 4" slab phone with rounded corners, no keyboard, and a look identical to the iPhone4. The interface features a BB link bar with popular social networking apps integrated into the system. Of course some of the popular apps may not be available from Blackberry World when the device launches, updates should immedialty follow.

Good luck RIMM. At least you got one good last ramp job to help some fucks in NYC retire slightly richer.

lizzy36's picture

For all those whose cares have been our concern, the work goes on, the cause endures, the hope still lives, and the dream shall never die.

IamtheREALmario's picture

Yes, but who is playing Jimmy?

... better than a bullet in the head.

Stochdoc's picture

The head and shoulders counts to 300, assuming the neckline is finally broken.



WarHorse's picture

Head and shoulders?  Better go back and re-read the John Murphy book

Stochdoc's picture

Dude, I've been a technician longer than Murphy.


Look at a three year chart - the left shoulder is March - May 2012, the head is August - November and we are in a weak right shoulder that is also a bearish descending right triangle.  The neckline is downward sloping.

WarHorse's picture

Those are the shoulders of Quasimodo  .. but I agree, chart look ugly

Freddie's picture

Agreed on Apple.  Do you see a breakdown in RUT and SPY?  They have almost the same head and shouldeers but the right should appears to be holding. 

WarHorse's picture

All the open interest for this month's expiry is centered on the $500 strike .. I'll bet you an iTV they pin it.

slaughterer's picture

$480 is the completion level of the sell-off.

Frozen IcQb's picture

They will hold the line at 500 until they can't where 425 is the next stop down followed by 370 thereafter.

AccreditedEYE's picture

Dr. Bernanke is also renownded for such effective policies as "banging the close" and "VIX-termination"....

BlueStreet's picture

20 month held in Nov. and Dec. but has now broken.  S&P to follow.  

Kreditanstalt's picture

Extend. Pretend. Hide.

Floodmaster's picture

Everybody tries to turn some meaningless transactions of pieces of paper into real stuffs

Lore's picture

Entropy, bitchez.

adr's picture

The stock market is now "The Economy". There is no business, there is no supply and demand, only a scrolling ticker telling you things are bad or good depending on the millisecond.

Don't shut the government down, the S&P might drop. Dell wants to go private, won't be allowed, ramp that fucker up so nobody can afford the buyout. No company may leave the apparatus.

The defense of this sick joke is appalling to me, and I like twisted humor.

A comedian I know from Pittsburgh, Anthony Jeselnik had his first TV run this weekend. He used a lot of his best jokes. One gem:

"After a show a girl came up to me, said how dare you joke about the Holocaust. I had family that died during the Holocaust. I said, funny you don't look Jewish. She continued with, there are some lines you don't cross. Hey, whoa I just paid you a compliment."

Cult of Criminality's picture

Hell yea!

Toss your PMs. Get on the Bond train,get them certificates of paper.

Double down , Lever the hell up to the outer limits ,STFU & BTFD

(sarc) ...[quietly laughing


Downtoolong's picture

yet no matter how close it got to breaching $500, and sending the company into who knows what stop loss tailspin, someone kept buying just above $500.

How hard would it be for TPTB to find out who and how if they really wanted to. A lot less politically difficult than to make it public to everyone else I guess.  What a sham of a scam these markets are now.

I bet Kevin didn't get to take lunch today.


TrustWho's picture

Is  the Fed actively buying stock? If so, how much do they own and where is it held?

tawse57's picture

After hours someone is keen to keep the price up over 500.

Frastric's picture

S&P can't seem to breach 1473, which is 807 points above the intra day lows of 666 reached on March 9th 2009...

reTARD's picture

Could it be just to buy some time for their funds and banks to "rebalance" their positions?

Shizzmoney's picture

I'll have my pants down to my ankles when AAPL stock burns to the ground.  It will be so glorious.

orangegeek's picture

Earnings season is upon us.  AAPL will have to put up.


More importantly, the NASDAQ100 looks like it's ready to turn down.


Apple follows its index - should be interesting in the next few weeks - to the downside.

SheHunter's picture

OP EX week my friends.  Enough said.

JPMorgan's picture

Apple has lost it's mojo.

Competitors have caught up and have overtaken them on the hardware front now.

It was only a matter of time before they would get beaten at their own game.

TWSceptic's picture

This isn't about hardware (or software). It's about expectations. Investors don't think Apple can keep up their profit margins with increasing competition. Prices will necessarily have to come down or sales will go down (they have already for iphone 5). With that in mind, the stock was grossly overvalued and overbought. I honestly saw it coming when it hit $700. I'm still surprised that not more people did.

Looking at the 5y chart though it seems it can easily reach $450 and still follow that long term trend line.

Flatchestynerdette's picture

We used to think of big things. Like going to the moon. The interstate highway. Now? the next upgrade to apple. that's not big - its little. we're slowing down as a nation of thinkers. Facebook? Same thing. slap on some advertising per page. everyone is migrating from FB to something newer but its a retread.

aapl at $500 today was Helicopter Ben using Goldie so the hedgies don't freak out and dump.

puts and calls. buy both. Ben won't let this go down the tubes but you can make some money when they announce - imo.

now, where's my ipo for SpaceX?

WTFUD's picture

Pretty much agree with you nerdette except for " slowing down as a nation of thinkers". The plethera of recent fuck you joe/ jane public exotic financial instrument(s) and other carefully designed " do i hang myself with the lights on or off " products leads me to believe that a lot of ( albeit mischievious ) thinking has been committed on a grande scale.

CoolBeans's picture

There's been a déjà vu in the Matrix. It happens when they change something.