Friday, February 11, 2011

Nasdaq 100 Mystery Bid while Horsemen pullback?

Today was a whacky day. Not only did a lot of shorts get stopped out, but a lot of stocks were down and down pretty big on the Nasdaq 100. AAPL, CSCO, AMZN all had negative performances - yet the index was up? The funny thing is that people are trying to explain already why AAPL just can't go up EVERYDAY on the first day that it has just a little selling during a A-B-C three wave bounce in the SPX and majors. Is it really that surprising? People are already writing articles like this: Snapshot of an Apple flash crash

The reality is AAPL failed a technical pattern and is at high risk at these levels but people apparently believe that it is not a high risk until it is a trillion dollar company. Something about the concept of any company being worth a trillion dollars just sounds wrong...but in bubble land I guess its a good thing.
However, AAPL showed some clear weakness in its pattern and a predisposition to be sold. Some cracks are certainly showing up. Certainly I rememebr the days when a $3.00 hit to CSCO was a big deal for the nasdaq. CSCO lost nearly 20 billion in market cap today and AAPL lost nearly 10 billion alone...Apparrently secondary names are being run and this is a sign of market behavior running on fumes and may run further.

Below is the summary of the Full NDX activity for the day...very interesting.
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