It took 60 seconds to bring Apple down by 6.4% at the start of Monday trading in the US.
The mini crash saw shares drop to $111.27, then retrace nearly half that amount within the next several minutes. Since then the market has stayed at the $115 mark.
In the five crucial minutes 13 million Apple shares changed hands with 6.7 million shares traded in the mini crash minute. Normally, slightly over 150,000 Apple shares would be traded in a day. Previous to Monday, Apple had already lost 2.2% last week, turning the upward trend since April 2014 on its head.
The suspected reasons for the sudden drop are plentiful: Steve Hammer, a trading educator and founder of HFT Alert in Santa Barbara, California is reported on Yahoo Finance as saying, “"When you see that kind of price action that is simply algos running stocks. A sharp price move coupled with high volume often prompts speculation about the influence of high frequency trading (HFT), when computer algorithms are used to trade stocks at an extremely rapid pace. HFT has been criticized for affecting the trading of stocks by sending in numerous trade quotes that slow quote activity - without filling the trades when shares fall.”
Other reasons noted have been; bullish analyst notes on Apple’s performance over Black Friday; lower expectations for the next year following the launch of iPhone 6 and the lack of supplies to fulfill orders especially in the China market; competitors bringing out watch devices before Apple’s launch of their Watch next year; and Apple’s lack of plans to push a smart TV on to the market.
What is certain is that the Apple crash also caused the USTECH100 [Nasdaq] to lose a full week’s rise, taking the index from 4331.12 down to 4285.20.
MT4 chart: APPLE
Mt4 CHART: USTECH100 [Nasdaq]
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