• Apple Stock Drops as Much as 6% in What Appears to be Unusual Trading

    Apple shares recently saw the highest decline in three months after opening with an unusually high trade volume. The Cupertino California company ended up dropping as much as $40 billion in market value before it rebounded to end the day down more than 3%. To put numbers on the news, AAPL opened up at $118.76 and hit a low point of $111.27 in the morning. Over 6.7 million trades were conducted over a short period of time. Trading ranged from $111.27 to $119.25 and Apple ended the day at $115.10 with a $675 billion market cap.

    Although the exact cause of AAPL’s brief “mini crash” continues to remain unknown, stock market experts believe that high frequency trading algorithms were triggered earlier today according to Reuters. Founder of HFT Alert, Steve Hammer, had the following to say regarding the matter:

    When you see that kind of price action that is simply algos running stocks.
    Hammer claims that the trade volume of some 300 stocks spiked shortly after markets opened, an indication of larger holdings firms initiating sell programs. By the time the stock market closed, nearly 85 million shares of AAPL had swapped hands compared to a three-month average volume of 58.6 million. Other market analysts however claim that blaming HFT at this time is a bit premature and not representative of complex market dynamics.

    For those of you who didn’t know, Apple stock recently reached a milestone when its market capitalization breached $700 billion last week. We’ll have to wait and see what happens going forward.

    Source: Reuters via AppleInsider
    This article was originally published in forum thread: Apple Stock Drops as Much as 6% in What Appears to be Unusual Trading started by Akshay Masand View original post
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