Monday, March 5, 2012

17,000 SHARE TRADE ROCKS AAPL-ARE YOU KIDDING ME?

CNBC has reported a 17,000 share block trade sent AAPL tumbling over 10 points this morning. First of all, good thing it was not 34,000 or 51,000 shares or AAPL would be under 500. Secondly, who in their right mind would actually show an order of that size to the street? The dark pool and HFT traders must have thought they died and went to heaven. In other words, that trader would have been so much better off placing 17 x 1000 share orders to get off his or her execution. If he or she would have enetered the order in that fashion, most likely they would been filled within a few points. At what price do you think a majority of that order was executed at, you guessed it, 526.00. What is the moral of this story? If you as a fund or an individual have a sizeable AAPL position, you better have an good exit plan. More importantly, use today's price activity as an example of what NOT to do.

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