Wednesday, December 2, 2009

Most Likely Why AAPL's Been Trading So Terribly While The Market Goes Up And AAPL Sells Everything In Sight....

AAPL's recent late - day (and all day) selling probably has to do with the levered ETF's and the new margin rules that hit yesterday. Given these margin rules many people will be selling the QLD and QID, as well as many other ETF's tied to the QQQQs. In most, if not all, of these, AAPL is the largest position. Those running these ETFs have to balance their books, and there are adjustments accordingly. AAPL being the largest position should therefore experience the most adjustments...

This really shouldn't occur for too many more days and is probably mostly done already. AAPL's Christmas results will likely be stunning, so I'm looking to add to my positions.

long AAPL

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