Monday, January 17, 2011

The Ultimate Circuit Breaker: MLK Day & Steve Jobs (AAPL)

Nasdaq futures today pre and post apple news 1 min
If the market were open today and the news Steve Jobs we could have seen carnage... but we did not because the cash markets are closed today.

Globex traded till 11:30am, nasdaq off 30 handles at one point.. Germany Apple stocked traded down over 8%....How perfect the timing..They are pricing in a 5-7% move down in apple stock tomorrow, the 325 level is going to be key.

The ultimate circuit breaker... The issue must be serious,, ths news could have been released sunday, but it was not..I think the issue with jobs is serious, but what do i know..

Also take into account Apple reports EPS tomorrow after the bell and the coming week is a shortened trading week with OPEX friday..

*In my opinion the perfect timing for the Jobs news would be about 10 am friday morning after the stock has traded post earnings with volatility priced more accurately. you know... Goldman Sachs style..

To refresh... We all remember the SEC charging GS with mortgage fraud the morning of OPEX about 5 cycles ago. I never heard a more resounding synchronized pound of a trading desk the exact moment Goldmanboy fell out of bed tearing the entire market down with it. I saw a lot of traders blow up that day thinking GS
was gonna flush by throwing premium into OTM puts only to see them go out worthless on the last bounce of the day. ON the other side traders who were quick and positioned long vol and did not have hands tied up in other things they did quiet well. Those who have been laying out shorts in Apple stock up at each all time high break will probably be rewarded tomorrow. It might be a short reward but take remember to take profits when their exist, dont like mind games get in the way of your trading.

If Apple blows out EPS the entire days down move could be retraced in AH trading and it will be interesting watching apple will trade into the close. Though, if apple shits in the pool, which i doubt will happen, the market will crumble.. Just like MSFT did back in late 2000..