Apple Stock Panic Labeled ‘A Premeditated Flash Dump’
While pundits have taken it upon themselves to explain that investors were “disappointed” with Apple after it delivered its results last week, evidence points to “a premeditated flash dump” enable by high frequency trading algorithms.
A report by Philip Elmer-DeWitt, writing for Fortune, cited a blog entry by trading insider ‘Tyler Durden,’ which noted Nanex charts (one shown below) indicating trades of 800,000 Apple shares worth almost $300 million executed in 17 second intervals.
“In this case,” the trader noted, “it looks like a very premeditated unloading” of Apple stock “in the last second, with the full knowledge it would shake the market. Why anyone would want (or wait until the very last second) to do that, while covering the offsetting ES short in the pair trade, to ramp the market into the close, is anyone’s guess.”
Something screwy going on here…