Submitted by Tyler Durden on 03/05/2012 - 16:35 Apple CDS High Yield NASDAQ Volatility
While not quite as impressive as the 02/15 sell-off in terms of volume or size, today's weakness in Apple's stock price was the 3rd largest drop in 3 months as we note implied vol pushed up once again mimicking the pattern from mid-Feb as the stock lost over $21.5 from high to low in a very flash-crash style around 1110ET. As both realized volatility and implied volatility increase, perhaps some of the 200+ hedge funds will allocate some risk budget away from the Apple or change mandates so that their bogeys are AAPL. Apple's weakness weighed on most other high-beta assets with High yield credit lower and only Utilities and Staples managing a positive close among S&P sectors (financials were mixed in stocks but CDS were wider). Somewhat interestingly, Treasuries sold off all day and modestly steepened and while FX markets drifted very modestly higher for the USD after the European close (despite some overnight JPY strength - risk-off), ES (the e-mini S&P futures contract) synced back with an underperforming CONTEXT (broad risk asset proxy) into the close as WTI regained $107 (along with strength in commodities) and AUDJPY improvement.
Comments: 26,,LOL Kinda glad to see the lack of interest in AAPL, the moonshot poster child for the powers that be. I am not a follower or should I say trader, of such nonsense. It was AMZN and NTFX before.
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http://www.zerohedge.com/news/apple-encounters-gravity-3rd-biggest-drop-3-months-drags-market-down
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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