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Rare Apple Beta Inversion

Submitted by Tyler Durden on 04/12/2012 15:06 -0400

While 'Apple is the market and the market is Apple' has been the mantra for much of the last few weeks, the last few days suggest a regime change. Apple is currrently trading down three days in a row (which is unusual in itself), having dropped the most in these three days since the middle of December. However, unlike the previous times when Apple dropped, the S&P 500 is ignoring it for two days in a row - something that has not occurred since mid-January and the largest divergence with Apple down 1.2% and the S&P 500 up over 2.1%. Are the professionals using the gap-fill market pump to sell into strength?

Quite a divergence for Beta 1...

and 3 down days in a row (red arrows) and two divergence days in a row (orange ovals) are unusual...

Charts: Bloomberg

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Thu, 04/12/2012 - 15:06 | 2338945 kato

Forget about the Morom baby mama (very big in Mormon culture – the younger the better, the more the merrier). What about Mitt’s kids? Mitt does not believe in welfare, except for his [useless] boys, who receive very generous amounts of it from their father – all in the name of a ‘days work’. What do they do besides ride Jet Skis around Winnipesaukee?

Thu, 04/12/2012 - 15:26 | 2339028 Levadiakos

Huffpo thaht way----->

Thu, 04/12/2012 - 15:34 | 2339063 NotApplicable

Actually, it's this way.

<------------

_{You're pointing to the Freepers}

Thu, 04/12/2012 - 15:39 | 2339078 NewThor

I love it when you guys put on stage plays.

Thu, 04/12/2012 - 15:45 | 2339104 TruthInSunshine

http://1.bp.blogspot.com/-Xp1wno9DXys/Thcb1FztEcI/AAAAAAAASQQ/XkhL2wjIsf...

Thu, 04/12/2012 - 17:21 | 2339470 johnjkiii

But it's Mitts money to give! I'd object if it was your money which is where Obammy wants to get it from.

Thu, 04/12/2012 - 15:08 | 2338954 resurger

(=0=)

Thu, 04/12/2012 - 15:26 | 2339031 Levadiakos

I buy cash

Thu, 04/12/2012 - 15:35 | 2339070 NotApplicable

Plus one for the artistic goatse.

Thu, 04/12/2012 - 15:10 | 2338958 monopoly

This could get interesting. Has been on top of my radar for a while.

Thu, 04/12/2012 - 15:11 | 2338962 Dick Darlington

S&P 500, the master of decoupling, only goes up. Why? Because it only goes up, duh! Until it doesn't of course.

Thu, 04/12/2012 - 15:11 | 2338964 kralizec

iMpossible! iGriddles are hot!

LOL!

Thu, 04/12/2012 - 15:10 | 2338969 monopoly

And especially so with the VIX plummeting again. Something is up.

Thu, 04/12/2012 - 15:23 | 2338973 BlandJoe24

The S&P "should" have gone down with PPI and bad unemployment data, but it went up "on rumors of possibilities of more QE" by Fed co-chair. Was the QE carrot brought out just in time to distract from the bad data?

Thu, 04/12/2012 - 15:51 | 2339128 SheepDog-One

How many times over has that QE been priced in? 100?

Thu, 04/12/2012 - 15:12 | 2338978 midgetrannyporn

rotation. crAAPL is its own asset class these days.

Thu, 04/12/2012 - 15:14 | 2338983 randocalrissian

We would be at SPX 1600 today if AAPL was up 2%. Play nice, doggie.

Thu, 04/12/2012 - 15:13 | 2338984 Village Smithy

The size of the crowd relative to the tiny exits that are available has to have some large position holders a bit nervous.

Thu, 04/12/2012 - 15:14 | 2338986 Ted Baker

SAME PATH WILL BE FOLLOWED BY GOOGLE AFTER REPORTING DISSAPOINTING EARNINGS...

Thu, 04/12/2012 - 15:46 | 2339107 junkyardjack

Does GOOG ever report good earnings? It seems like they always miss, at some point they have to beat I would think.

Thu, 04/12/2012 - 16:00 | 2339160 slaughterer

The bar has been set low enough this quarter for GOOG. Watch and see.

Thu, 04/12/2012 - 15:15 | 2338991 walidsassia

selling aapl to buy facebook next month

Thu, 04/12/2012 - 15:32 | 2339056 The Swedish Chef

Me too. Also selling all physical that wasn´t lost in that tragic boating accident, a couple of pints of blood and my firstborn. I mean, who would wanna miss the hottest IPO ever?

Thu, 04/12/2012 - 15:44 | 2339096 junkyardjack

I took out a home equity loan when I read that they bought Instagram. Going all in, early retirement here I come...

Thu, 04/12/2012 - 15:16 | 2338996 griff63

Can someone please explain what "gap-fill market pump" means? I'm trying to learn but have a long way to go to catch up to you 'pros'. Thanks.

Thu, 04/12/2012 - 15:20 | 2339009 ZeroPower

Market is filling the "gap" post NFP (jobs) report (which led to a plunge last friday) and the market is retracing back to levels higher since a higher market means obaMao stands a chance at re-election.

Thu, 04/12/2012 - 15:54 | 2339136 SheepDog-One

The higher markets have not gained any traction for Obama who still spins his wheels in the mud at 40% approval. Do people really think that pumping stocks for fat cats will make people like Obama? I dont.

Thu, 04/12/2012 - 15:21 | 2339012 stockwatch101

I am new too but I think if I am not mistaken this is what it means.

If institutions dump AAPL stocks when the market is down, people will panic and you will see a major sell off but if they dump when the market goes up, hardly anyone will notice the sell off from AAPL. Pro's please jump in.

Thu, 04/12/2012 - 15:16 | 2338998 stockwatch101

Nothing is new. everytime the market goes down, Ben sends all these clowns to the press and they will repeat the same BS all over again and the market smokes hopium. Today IMF, ECB, FED all out with their wand.

Thu, 04/12/2012 - 15:40 | 2339083 Village Smithy

And don't forget the rumour out of China that GDP may suprise to the upside. At least when the squid manipulates the market through a guy like Dudley it's "Made In USA". This off-shore crap just pisses me.

Thu, 04/12/2012 - 15:17 | 2339000 monopoly

And as Zero Hedge posted many times....That is one small door for everyone to get out at the same time. Please, noone yell "FIRE".

Thu, 04/12/2012 - 15:20 | 2339010 dragoneyes74

Yeah, the big boys seem to be booking some profits in case Apple misses. Hoping for a bottom at $611 and then a run-up into earnings.

Thu, 04/12/2012 - 15:23 | 2339015 carbonmutant

Hedge funds were using AAPL as a bank during the recent selloff

Now they rotating to ride this 2 day rally...

Thu, 04/12/2012 - 15:25 | 2339022 monopoly

I was thinking more like 411 for a bottom on AAPL>

And the retail crowd sure likes GOOG 45 minutes before earnings. Man, are they smart.

Thu, 04/12/2012 - 15:28 | 2339039 junkyardjack

GOOG has a lot of great ideas but none of them make money

Thu, 04/12/2012 - 15:40 | 2339086 NotApplicable

When you can spy on the whole world, money is not the appropriate measure of value.

Thu, 04/12/2012 - 15:31 | 2339047 slaughterer

Could be retail, or more likely Mr. Pink.

Thu, 04/12/2012 - 15:28 | 2339035 Memphis10

A company with the most wanted products in the world being down .66% is news worthy? Cmon Man!

Thu, 04/12/2012 - 15:35 | 2339069 monopoly

Memphis, I think just the fact that it is DOWN is news. But agree, 3% off its all time high is no big deal. Lets just keep it on our radar. Might surprise us....

Thu, 04/12/2012 - 15:58 | 2339155 I am a Man I am...

Tyler has a hard on for apple to fail. Been this way for a long time. His posts are biased against apple. Reggie M. had the sense to finally stop writing about apple, Tyler not so much.

Down 0.50% as I type to 623, here is TD's "iDisappointed" article, apple was at 530 on March 7.

http://www.zerohedge.com/news/idisappointed

Thu, 04/12/2012 - 15:29 | 2339041 slaughterer

AAPL usually rallies into earnings. But 130 hedge funds are probably worried about GOOG earnings right now as well as how "hot" the NEW iPAD sales are.

Thu, 04/12/2012 - 15:39 | 2339079 junkyardjack

"AAPL is the market" theory blown into a million little pieces, Bullish

Thu, 04/12/2012 - 15:47 | 2339112 Village Smithy

You make a good point. It seems that lately if anything of a "cautious" nature gets too much attention it finds itself "fixed" all of a sudden. A couple of weeks ago the fact that the Russel was lagging a bit was making the rounds and that it could be a canary. Then the squid announced it was a definite long.

Thu, 04/12/2012 - 15:41 | 2339092 slaughterer

LOL.

Thu, 04/12/2012 - 16:10 | 2339196 Goldilocks