Gravitation Returns As Apple Falls, Drags Everything With It

Tyler Durden's picture

Four of the last five days have seen AAPL stock price swing +/- 3 sigma with today's drop approaching the largest drop in six months as rumors of iPhone sales weakness spread virally. Realized volatility is exploding on many different measures and AAPL implied volatility back to November highs. Of course as tensions mounts and the stock breaks Monday's closing VWAP, so margin calls on options expiring tomorrow are flopping over into various other markets as S&P 500 e-mini futures drop back below their 50DMA and VIX jumps up over 19.5% once again. Gold has pulled back in line with the USD and while the S&P 500 flip-flopped between bullishly synced with the USD and bearishly synced with Treasuries, for now equities in general are trying to catch up to longer-term Treasury weakness.

The cyan, yellow, and dark blue lines are the closing VWAPs of the last few days and as is clear we see heavy volume around these levels. The break just now of the closing VWAP from Monday's low print day was accompanied heavy volume once again...

With huge sigma moves over the last few days that will likely wreak havoc with anyone's risk-return optimizer...

As realized vol has exploded...

And broad asset class movements have been very interesting...

But the Equity-Treasury divergence intraday is actualy a convergence to Treasury's implied weakness from the last week...

Charts: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Oh regional Indian's picture

Beyond ironic that Apple (as an idea/stock/product) is where it is, in the big apple.


The Big Ching-aso's picture




AAPL used to be the apple of me one good eye until it cost too much to look at it.




AldousHuxley's picture

why buy appl when you can buy friends....facebook IPO in May

Splunk IPO today. x2.

slaughterer's picture

Now that ZH has broadcast the downward movement, it is safe to buy AAPL again. 

Levadiakos's picture

This is the last remaining retail stock out there. everything else is managed asset allocation programs...

It's not surprising that the SPX is threatening to break the handle of an inverse cup and handle pattern here this afternoon (~1373-4)


The only way the market survives is if "Mad Money" is canceled.

Comay Mierda's picture

AAPL breaking key support levels on heavy volume and heading lower to eventually fill the gaps at $570 and $430.  great shorting opportunity

Levadiakos's picture

A NFLX overlay wpuld play out nicely and it's ironic that AAPL pps is/was almost exactly 2 times NFLX playing from the top at $305.

LongSoupLine's picture

Warren's prostate must be unloading.

LongSoupLine's picture

Check out the 3+ million SPY share spike at 3:27.39

3+ million shares in less than a second at 137.6+ each??....yeah, must be a "day trader"...or Waddle and Reed.

Gringo Viejo's picture

If I'm in gold at $1,900.....I'm disappointed.

If I'm in Apple at $644......I'm very fucking nervous.

Bam_Man's picture

Nothing to see here.

It is perfectly normal for the stock of "The Most Valuable Company in the World" to have intraday swings of 3-5% every single day.

Otherwise you might be tempted to think that the stock of "The Most Valuable Company in the World" is nothing but a Hedge Fund/HFT plaything.

dow2000's picture

Sta-bil-i-teeeeeeeeeeeeee! Fed Manadate!

HedgeAccordingly's picture

Once again the entire market is brought to her knees by one lonely stock - Crapple -

crapple Vs Goog - 

Goog held firm..

Ahmeexnal's picture

goog is a cia/rothschild operation.

engineertheeconomy's picture

GOOG and AAPL both  cater to the military-banking-complex. They all sleep in the same bed

CPL's picture

the lizard king...uncanny.

Treason Season's picture

Pop trivia question of the night

Who's father was intimately involved in one of America's illegal war and how?

Give up? The Viet Cong didn't


George Stephen Morrison (January 7, 1919 - November 17, 2008) was a Rear Admiral and naval aviator in the United States Navy. Morrison was commander of the U.S. naval forces in the Gulf of Tonkin during the Gulf of Tonkin Incident of August 1964. He was the father of Jim Morrison, the lead singer of the rock band The Doors.[1][2][3]


blu's picture

GOOG has too much power to work for anyone except themselves. I'm more concerned that the CIA and Rothschilds will be soon or are already working for GOOG.

NotApplicable's picture

Yeah, and all of their initial operating capital just magically appeared out of nowhere.

Levadiakos's picture

I just need Michele Caruso Cabrarrea's opinion like I need cancer. is there a more ignorant person on  TV?

blunderdog's picture

You're not supposed to listen to her, she's just there so you can look at her tits.

Levadiakos's picture

Don't get that far w/ sound off because I gag at the face

JW n FL's picture



High Hoe!

High Hoe!

A Shorting I did GO!


DCFusor's picture

Short from 621, myself.  yee ha.

brucef9321's picture

i getting tired of this stuff.



blu's picture

There's an app for that actually.

Pancho Villa's picture

Apple once had a product called the Newton. It was a flop.

Ahmeexnal's picture

you obviously never had one.

Levadiakos's picture

legs furiously pumping their stiff green gallop

Pancho Villa's picture

No, I never owned one. A friend of mine had one and he said it had nice features, but the software was kind of buggy and the price was rather high. There was a famous episode of the Simpsons where one of the school bullies tries to make a note on his Newton saying "Beat up Martin", but the Newton translates this as "Eat up Martha". So he just throws the Newton at Martin.

And naming an Apple product for a guy famous for observing falling apples seems like tempting fate. But then, Apple was able to get some sort of revenge by dropping the Newton.

The Newton was one of the products that Apple came out with after Steve Jobs was pushed out. Scully and the managers that followed just didn't seem to have Jobs' knack for creating killer products. Sales rose for a couple of years after Jobs left, then stagnated. Will the same thing happen again?

Levadiakos's picture

Could you fry an egg on it?

blunderdog's picture

I had one (for work purposes) and supported them for awhile.  They sucked, unless you were one of the lucky folks whose cursive handwriting worked the way the Newton expected it to.  It didn't get too hot, it ran on AA's and fit in a pocket.  It was no match for the Palms and the Wizards and all the other devices with keyboards on 'em.

TradingJoe's picture

Ah, yeah, options expiration, since when does it care anymore!? Up by Monday eh?!

slaughterer's picture

Looks like the maximum pain pin for tomorrow is $590.  MMs always kill off AAPL options players on opex.  It is tradition.     

pods's picture

I thought it was against the rules for AAPL to go down?


blu's picture

Read the fine print there. It's against the rules unless GS or MS or one of the others is set to make a profit on the move.

LongSoupLine's picture

Good point blu...after all, GS did just upgrade AAPL.  go figure.

Paul Atreides's picture

The hedge fund hotel has cockroaches.

Levadiakos's picture

Thought they learned that lesson with FSLR, NFLX &c, &c

slaughterer's picture

Whoever was selling calls for tommorrow is clearly in control of the situation. 

Christoph830's picture

3-4 pm ramp-up anyone?

Ted Baker's picture


Silversem's picture

Why buy an apple if you can also buy Gold (or trade it with a contract for difference)