What’s behind unusual trading in Apple

“Shares of Apple have exhibited many trading anomalies in the last week since we predicted that profit-taking might take place around the $600 level,” Evan McDaniel writes for optionMONSTER. “Sure enough, it appears that others were on the same page this week as Apple has seen its worst performance in nearly two months.”
“In my opinion, it appears that profit taking by at least one large institutional player is keeping AAPL in its recent sideways range,” McDaniel writes. “Do I think Apple will go higher? yes, but not after a solid base is formed above $600.”

McDaniel writes, “Which brings me to the ‘flash crash’ in Apple on Friday morning. Many have speculated that the sudden drop to $542.80 was the result of a misprint or a computer glitch. But similar trades hit the tape earlier in the week and were canceled, as was Friday’s. I believe that these trades were done intentionally to scare off buyers and slow the stock’s momentum, with full knowledge that the transactions would be canceled.”

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