Interesting article that touches on why we’re seeing such major moves in the stock market despite there being any real economic reason for it. The article asserts a massive orchestration of short selling as it pertains to China and those related securities and feeding into panic into a market devastation that just isn’t there. Tim Cook came out to refute the source of this panic, perhaps to the large institutional investors chagrin.
After reading this article, I suspect the late day selloff at the end of today (or yesterday if you’re reading this in the morning) was once again rigged by large financial institutions looking to capitalize on misdirection and fear, and calling into suspect Tim Cook’s motivations for his disclosure on the mid-quarter reveal. If you sell enough shares, you’ll eventually run out of buyers, and there are probably only a handful of companies you need to short sell to trigger a panic in the broader markets. I think AAPL is one of those companies and is one of those companies in the crosshairs for these institutional manipulations. I remember reading somewhere that institutions are allowed to short sell against securities they own in the form of short term contracts. I am not sure exactly how they do it or how they can get away with it, but they do, and they profit massively on the short term trading swings.
Something to think about to keep a level head through all this turmoil. It too shall pass when earnings reports start to trickle in in another month, where fundamentals will once again trump emotions and fud.
For a shorter term glimpse, I would look at AMBA as an early sign. They report next week and should be a good indicator on what market demand is really like.
Good perspective. I’m usually skeptical of claims of market manipulation simply because some people claim that for almost any move they don’t like. However, I think it’s a given that big money sources constantly try their best to manipulate prices since that’s a way to improve gains over just buying and holding. Sometimes they probably succeed to some degree and the recent action sure seems like a likely case. I guess we minnows just need to hide out until the sharks are done feeding. I have moved some funds from some stocks that have held up (e.g. UBNT after Saul’s thought provoking comments) to ones that have been hit harder, but should be strong once the market movers decide it’s time to go up again.
For a shorter term glimpse, I would look at AMBA as an early sign. They report next week and should be a good indicator on what market demand is really like
Another short term sign will be AVGO which announces earnings after the bell today. They are a competitor of SWKS and has a few components in Apple products. They recently closed their purchase of LSI and are in the process of closing their deal with Broadcom, which was announced at last quarters earnings.
Hopefully the CEO talks about demand in the current quarter and any insight into any effect of China has had with their outlook.
I have moved some funds from some stocks that have held up (e.g. UBNT after Saul’s thought provoking comments) to ones that have been hit harder, but should be strong once the market movers decide it’s time to go up again.
Yep me too - I sold UBNT (at a profit) and switched to SNCR and AMBA today.
Ant
I suspect the late day selloff at the end of today (or yesterday if you’re reading this in the morning) was once again rigged by large financial institutions looking to capitalize on misdirection and fear,
Less cynically, when retail investors like us choose to dump mutual funds during the day, the mutual funds sell at the close and give you the closing price. So if a bunch of people paniced, which happens all the time, then this is perfectly understandable.