How Apple crash could bring down the market

[burningleg]

How a deeper dive by Apple could crush this market
By Victor Reklaitis
Published: Aug 4, 2015 10:38 a.m. ET


Crumbles by commodities and the Colossus of Cupertino have been getting much of the blame for the stock market slumping in seven of the past 10 sessions.

“If AAPL doesn’t find its footing soon, it may risk a deeper drop,” writes Andrew Nyquist, over at See It Market.

And as goes the largest company by market value, so goes the whole U.S. stock market. Or at least a further slide by Apple would act as a mighty powerful brake on the S&P 500 SPX, +0.05% SPY, +0.04% , where it’s about 4% of the benchmark, and on the growthier Nasdaq 100 NDX, -0.12% QQQ, -0.09% where it’s a 14% chunk.

So, what’s the matter with Apple AAPL, -2.51% ? For the first time since September 2013, the tech giant’s stock has knifed under the closely watched 200-day moving average. Many chart lovers use that as a guide to a stock’s long-term trend.

Also, Apple has entered into what’s often called “correction territory,” by dropping more than 10% from its peak. Go here for more on the iPhone maker’s technicals, from one of MarketWatch’s resident chart nerds, Tomi Kilgore.

Nyquist suggests Apple, which closed at $118.44 on Monday, could tumble into the $109-to-$115 range — an area the tech giant jumped out of in January, after quarterly results crushed forecasts.

“A move lower would likely target the open gap from the late January earnings ‘beat.’ But a pivot higher in the $115-$118 zone (give it a little wiggle room) would neutralize the selling pressure and give bulls a chance to regroup,” Nyquist says.

More here:
http://www.marketwatch.com/story/how-a-deeper-dive-by-apple-could-crush-this-market-2015-08-04

[Serpo]

This could really stew (apple stew) up the market , its the only thing holding up the illusion, one bite and shes all gone.

[burningleg]

“AAPL Is Crashing – It May Be Over”

We’re dying to see Icahn’s next filing on Apple. The fact that Carl has not Tweeted anything on Apple since June 24 is interesting. – The King Report, M. Ramsey Securities, Aug 4, 2015

AAPL has been by far the biggest contributor to the run-up in the stock market since the Fed began printing trillions of dollars to save the big banks and reinflate every paper-fueled financial bubble that has infected our economic system since the mid-1990’s. While everyone points to Bernanke as being the “king of the printing press,” the Maestro himself, Alan Greenspan, worked his “maestro-ism” by pressing down hard on the money-printing accelerator in order to “fix” every big financial collapse since the 1987 stock market plunge.

Now one-by-one the bubbles are popping. EU sovereign debt and the Chinese financial system are clearly the most visible for the time being. It also looks like the pancreatic financial cancer that took down Greece has now invaded Spain.

But the bubble-popping pin is also starting to invade the U.S. economy. One has to wonder if the Obama Government will invoke the “national security clause” of the Patriot Act and try to incarcerate the bubble-popping-pin without a judicial hearing at Guantanamo (the Guantanamo that Obama promised to close after he was elected in 2008). Maybe Wesley Clark will suggest putting the bubble-pin in an internment camp…

The poster-child for the U.S. financial system bubble has been AAPL. Aside from Carl Icahn pimping his big position in the stock for a few years, Wall Street money slaves have tripped over themselves to drool over the Company’s overpriced cellphones and computers. Not only is the price of AAPL stock a bubble, but it is a bubble in marketing, shameless promotion and the amount of unused tech gadget computer power for which the AAPL cult adherents happily pay – often with credit.

While no one knows which coming event will ultimately crash the U.S. financial system, the economy is clearly receding deeper into recession. The GDP bounce reported for Q2 is nothing more than statistical smoke and mirrors fabricated by Government statisticians and Orwellian propaganda. Every private-sector economic metric is now showing declines further into negative territory. Today, for instance, factory orders plunged for the 8th month in a row, down 6.2% for June vs. June 2014.

Along with the deteriorating economy, the dislocation between the fiction of stock market valuations and the reality of Main Street continues to widen. This will not have a happy ending. The law of “regression to the mean” will at some point assert itself in brutal fashion and the multiple paper-fueled financial bubbles blown by the Fed will pop and decimate our entire system.

I doubt AAPL will be the trigger, but anyone blindly bullish on the stock market has to take notice of the 15% plunge in AAPL’s stock since its recent all time high:

http://investmentresearchdynamics.com/wp-content/uploads/2015/08/AAPL.png

With Carl Icahn likely selling furiously, if not out of his position entirely, and every large hedge fund over-weighted in AAPL, who will catch the falling knife? If the Fed or the Swiss National Bank does not insert a safety-net – and it appears as if the SNB is already filled on AAPL paper – AAPL has a long way to fall before it reaches a fundamental price that makes any sense. Of course, the same can be said for the entire stock market…

http://investmentresearchdynamics.com/aapl-is-crashing-it-may-be-over/

[burningleg]

Something Snapped Again Behind “The Curtain”

August 4, 2015Financial Markets, Gold, Housing Market, Market Manipulation, Precious Metals, U.S. EconomyAAPL, Atlanta Fed, Lockhart, OTC derivatives

While the movement in AAPL stock may have affected the first 30 minutes of trading in the NYSE, about 30 minutes ago the SPX fell of a cliff while AAPL remained largely unchanged. While financial tv clowns might attribute the sell-off to the Atlanta Fed’s Lockhart issuing a statement that September is the right time to raise rates, that was not the catalyst – click to enlarge:

http://investmentresearchdynamics.com/wp-content/uploads/2015/08/Snapped.png


The Fed mannequins are now seen as “the boy who cried wolf.” Only this cry has been going on for over two years now. The market is immune to the good cop/bad cop routine.

Furthermore, you’ll note that the SPX also gapped down around 10:30 EST, again on no apparent news triggers. This was well before Lockhart had to chance to memorize and rehearse his rate-hike comment.

Not only did stocks gap down twice today without any help lower from AAPL, but the price of oil has crashed through $50 in the last week and a half and appears to be headed to $40, if not lower.

Perhaps the recent plunge in AAPL stock is a reminder to momentum chasers that markets always have a way of moving in two directions and not just “up.” Certainly the economic news continues to get worse and two homebuilders “missed” their highly managed revenue and income bogeys this morning.

No doubt the Fed will catch the knife again today – just like it did yesterday. But the warning signal has been sent and there’s nothing Janet and Stanley can do about that.

Reality has funny way of hitting us in the back of the head when we least expect it. How many of you were aware that a domestic revolt is brewing in Spain or that the Spanish financial system is one-step removed from sliding down the avalanche chute behind Greece? If you only follow U.S. mainstream news you are unaware of a significant amount of realities hurtling toward the U.S. financial, economic and political system.

I mentioned in April based on some data from Fed – data that is well-hidden, arcane, and well-above the intellectual capacity of U.S. financial media – that a derivatives accident of some sort occurred behind “the curtain” in December. I believe the sell-off in AAPL and the sudden waterfall sell-offs in the SPX may be just one of the ripple effects we’re seeing related to whatever occurred in December.

Of course, please ignore the collapsing price of oil…after all, that has nothing to do with economic demand – or lack thereof…Perhaps that train in that slow motion train wreck we’re observing has started to accelerate.

http://investmentresearchdynamics.com/something-snapped-again-behind-the-curtain/

[mick silver]

people in the real world knows the markets are rigged they also are starting to talk more about how long this can go on before the house comes down