AAPL having a 100 point drop on Thursday is a possibility

commodificationcommodification
Posted:
in AAPL Investors edited January 2014
AAPL having a 100 point drop on Thursday is a possibility considering how many hedge funds are loaded up on this stock. The shorts will make a ton, high frequency algorthmic traders will make a ton, but the average retail investor is going to get screwed.

Comments

  • Reply 1 of 6
    tallest skiltallest skil Posts: 43,388member
    Apple's not a short-term stock and it never has been. You hold it for years as it gains value and you sell it when you need to. It's strong, it's trustworthy, and it's just gonna keep going up.



    All drops are weatherable.
  • Reply 2 of 6
    kingofsomewherehotkingofsomewherehot Posts: 4,181member
    A 100 point drop was also a POSSIBILITY on Tuesday !

    It was a POSSIBILITY last month, too!



    Your statement is 100% accurate on every day that AAPL opens ABOVE 100... EVERY DAY!
  • Reply 3 of 6
    commodificationcommodification Posts: 331member
    Lets just say that over the next few days the chance of aapl having a 100 point drop is more likely. Don't forget that a stock can become detatched from it's host company and react in ways that logically it shouldn't.
  • Reply 4 of 6
    jag_warriorjag_warrior Posts: 177member
    I've been investing in equities for nearly 30 years now. And to be successful, one has to separate what is possible from what is probable. And to gauge the probability of AAPL dropping 100 points in one day (aside from an overall market crash), one should take into account AAPL's current P/E ratio and book value, among other fundamental and technical factors. I am aware of nothing at all which suggests that probability is very high at all.



    What would be the reason for hedge funds (or any other investment entity) to try to dump their AAPL shares en masse on any given day? And why APPL? Why not MSFT, GE, RIMM or some other?
  • Reply 5 of 6
    tallest skiltallest skil Posts: 43,388member
    Quote:
    Originally Posted by Jag_Warrior View Post


    I've been investing in equities for nearly 30 years now. And to be successful, one has to separate what is possible from what is probable. And to gauge the probability of AAPL dropping 100 points in one day (aside from an overall market crash), one should take into account AAPL's current P/E ratio and book value, among other fundamental and technical factors. I am aware of nothing at all which suggests that probability is very high at all.



    What would be the reason for hedge funds (or any other investment entity) to try to dump their AAPL shares en masse on any given day? And why APPL? Why not MSFT, GE, RIMM or some other?



    This thread came right after the Steve Jobs resignation. It was insane paranoia.
  • Reply 6 of 6
    jag_warriorjag_warrior Posts: 177member
    Quote:
    Originally Posted by Tallest Skil View Post


    This thread came right after the Steve Jobs resignation. It was insane paranoia.



    Ah yes. The news that shocked... no one. I was saddened by the news, as were most people. But anyone who honestly thought that an event (that the market had been expecting for nearly a year) finally being announced, would cause the stock to drop 100 points in a day should definitely stick to mutual funds. I'm not trying to be offensive. But not everyone should be invested in individual, common stocks.



    A fellow I used to work with years ago once asked me how much he could make if he followed my investment advice on some money he had stashed away. I asked him how much he was talking about. He said... $1000. I liked him, so I didn't laugh (right away). I just told him that I could help him make a steady and consistent 2% or so a year. I would even drop him off at the local Bank of America and direct him to the cutest teller in the bank, and she would help him open that savings account.
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