One of the best but rare ways to make extraordinary money trading stocks intra-day is to monitor and grab the opportunity the moment a mini crash happens beyond what appears to be normal market behaviour. Apple Inc. (Nasdaq: AAPL, stock) stock did just that briefly after the opening bell – lost about RM16 bucks to $275 per share, erasing about US$15 billion in market capitalization, before recovering immediately
Such case happened before due to technical glitch, error selling due to “fat finger”, rumours reported by very influential news portal etc. And on almost all such occurrences the stock affected rebound strongly thereafter, sometimes minutes or hours within the same day depending on what causes the flash crash in the first case. And just what causes the panic selling in Apple’s stock?
1) Research In Motion Limited’s (Nasdaq: RIMM, stock) announcement that the BlackBerry maker entered the tablet market? But that news was one day old and given the fact that the RIM stock drops instead of up this morning, it can’t be that the RIM’s PlayBook launch was slaughtering Apple’s shares. Just because the PlayBook support Adobe’s Flash doesn’t mean people are jumping onto the RIM’s latest device as if they have found the Holy Grail. Besides, RIM isn’t even out of the gate yet, not to mention the pricing is unknown.
2) Disappointing consumer confidence report that shows the index dropped to its lowest level since February’s 46.4. The latest index just released was 48.5 against Thomson Reuters expectation of 52.5. Yawn! Everyone was expecting a bad report so let’s not waste time here.
3) Computers suddenly woke up and take control of the trading system hence the systematically profit taking. Sure, and the Terminator computer program was sent from the year 2029 specifically targeting Apple shares as if the stock is Sarah Connor.
4) Old rumor that Hewlett-Packard Co. (NYSE: HPQ, stock) is courting Apple COO Tim Cook as its new CEO, after HPQ fired its CEO Mark Hurd who later joined Oracle. But Tim Cook has done a great job and seen as the successor to Steve Jobs should Jobs decide to call it the day. Besides, HPQ is too boring a place to work compared to Apple and Tim knows it. The latest update has it that Gleacher & Co.’s Brian Marshall, who follows Apple, ran into Tim Cook in Palo Alto, had coffee, and asked Tim about the rumor but Cook said he loves Apple.
5) A Goldman Sachs report that the Apple’s next-generation iPad will likely be smaller, lighter and include a camera plus a mini USB port. The new iPad is said to be 7-inch, the same size as BlackBerry’s newly launch PlayBook. But it’s yet to be seen if users actually prefer the current 9.7 inches or a smaller new iPad. The new iPad was reportedly available only after June 2011, later than some had expected thus giving time for other 7-inch tablet competitors to lock-in customers.
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