How did this tape happen with Apple?

T

thatSAMazing

http://beta.nasdaq.com/aspxcontent/...mbol=&pageno=1055&selected=AAPL&mkttype=AFTER

I know the stock crashed because of the lowered guidance. What I don't understand is how a stock that was trading a thousand shares every second could drop instantaneously 13 points. How could there be no gradual drop over the course of say 2 or 3 seconds? Can someone please explain to me how something like this can happen instantly when there are so many people trading at the same time?
 
Simple supply and demand. For that one moment in time there were so many sellers, pushing up supply, that the price had to adjust downward to attract buyers (demand).

Make sense? Thats the market.
 
Quote from thatSAMazing:

http://beta.nasdaq.com/aspxcontent/...mbol=&pageno=1055&selected=AAPL&mkttype=AFTER

I know the stock crashed because of the lowered guidance. What I don't understand is how a stock that was trading a thousand shares every second could drop instantaneously 13 points. How could there be no gradual drop over the course of say 2 or 3 seconds? Can someone please explain to me how something like this can happen instantly when there are so many people trading at the same time?
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Possibly 'buy the rumor, sell the news' type of activity?
 
Damn, the link doesn't show the right page. Basically the traded price of Apple goes instantly from 157.65 to 144.95 and then continues to drop from there.
 
I don't see your point. Are you presuming that liquidity after hours is similar to the regular trading day.

And, I am not saying I am a hero or anything, but I was able to sell a few shares above 150 after the report. Now granted - I was still long a few calls from the open and had one foot out the door at the first whiff of weakness, but I did not think the move was unusual in this day and age.
 
Thats a valid question. I asked the same thing when I tried playing RIMM on earnings about a month ago... I waited for the price to show its face then I would buy if it went up and sell if it went down... well I saw prints hitting $5 below closing price on high volume... I quickly shorted then saw price go $10 above closing in the next couple of minutes.

I went through most of the time and sales trying to understand the price action and figured that it really made no sense. There were $6-$7 breaks between 2 ticks?!?!?

After all this analysis I realized I don't really care wtf happened because the first 30 seconds after major news is released is a total gamble.

I don't gamble no mo!! Don't need to.
 
Quote from thatSAMazing:

Damn, the link doesn't show the right page. Basically the traded price of Apple goes instantly from 157.65 to 144.95 and then continues to drop from there.
More...

it's because people pulled their bids. if no one wants to buy then there will be no bids.
 
Quote from thatSAMazing:

Damn, the link doesn't show the right page. Basically the traded price of Apple goes instantly from 157.65 to 144.95 and then continues to drop from there.
More...

it`s called no bids.....when bids vanish,what do you expect to support the stock ?with sellers stepping over each other to offer it downl & hit small existing bids in AH does`nt help.

get used to it....there will be plenty more where that came from in `08.
 
If you were able to get a sale at 150, why doesn't it show on the Nasdaq list? What you say happened to you is exactly how I would expect things to go. Did you sell right when you saw the guidance number may I ask?
 
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