Apple falls, drags down Dow

7 Comments

  1. David Emery said:
    Well, statistically “Apple drags down Dow,” but this felt more like a general decline that was amplified in AAPL because of the recent rise. I think AAPL is more volatile than either Dow or S&P, and that’s OK.

    0
    July 19, 2021
  2. David Drinkwater said:
    My take: “Bears, don’t get caught with your foot in the trap.”

    0
    July 19, 2021
  3. Kirk DeBernardi said:
    I just “love” how most of the headlines I combed through about the Dow downer today mention “increasing COVID cases” as a lead culprit in this drop.

    Do millions of individual and institutional investors really panic in such lockstep unison, or is it that it’s a media low-hanging-fruit, click-bait excuse-d’jour to comfortably hang your hat on — that begets even further panic?

    Being nervous in a market never seems to pay off to this average investor.

    2
    July 19, 2021
  4. Daniel Epstein said:
    When the market has a stampede in selling like today (or buying) there is always a rush for explaining the trigger and how important today’s action is to the future of the market. The surge in COVID could be the trigger but the trading didn’t completely make sense if the decisions were being made about individual stocks that make up the market. Oil price dropping and interest rates dropping are going to be good things for some companies but bad for others. People and institutions mostly seemed to be trading to get out of investments, taking profits, throwing the baby out with the bath water etc. When IBM reported good earnings after hours the initial jump in price was almost equivalent to the loss the stock had during the day. Certainly the market is nervous about COVID again but maybe not as nervous as it was when we had no vaccines etc. Maybe it was machine trading exaggerating the momentum trade. Or likely some combination.

    2
    July 19, 2021
  5. Jerry Doyle said:
    I agree with Kirk DeBernardi’s assessment.

    Additionally, I spent about five hours today listening to market news. Commentators repeated often that the largest stock dragging the Dow down was Boeing (BA) @5%. Apple was down 2.69 percent.

    COVID was the topic du jour. The fear being discussed was shutting the economy down similar to last year due to the Delta variant. Not a single commentator saw that happening. The horses are out-of-the-barn and little doubt this has political leaders sweating bullets.

    Apple navigated through COVID-19 in outstanding measures last year. Should matters deteriorate with the Delta variant I have little doubt Apple will do the same again. Apple is a stay-at-home play. So, as brother Kirk says, “…. being nervous in a market never seems to pay off to this average investor.”

    2
    July 19, 2021
  6. Bart Yee said:
    It always seems that talking heads throw out many “reasons” how stock action relates to news, events or economics of the day or near future. Yet they never seem to do the following:
    1) determine what percentage of trades are institutional vs retail investor – fairly easy to see on lot size alone and follow the money trail.

    2) talk to institutional managers and ask them why they may have sold or bought and why. Not what they might do but what they did do – behavior vs belief.

    3) ask how they have set up machine or algorithmic trading and what are their thresholds or goals in doing so? And whether they are really related to economic trends, threats, sector rotation, or other decision making points.

    Of course, all of the above would be significant work for interns, staff, or pumping contacts for info or interviews. It also requires somebody to divulge probably proprietary trading methods, techniques, or strategies so using more facts vs more (or mere) speculation.

    1
    July 20, 2021
    • John Konopka said:
      I don’t think it much matters what they say. No one ever holds them to account. There is no way to prove or disprove any of their assertions. Besides, no matter how convincing today’s story was tomorrow there will be different news to drive the market in a new direction.

      When I see most of the traces in the stock app looking similar I assume it is because the algorithms are feeding off of each other.

      3
      July 20, 2021

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