What’s going on? Pretty obvious actually. Some major players (or player) just took a major piece of risk off the table. Of course they may have created the risk they were trying to avoid. They took GOOG down 104 points in 15 trading days, and AAPL down 101 points in 26 days. The chain reaction hammered the indices too. While these were canny moves for billion dollar portfolios all it signifies is that torrential supply will drive prices down.
Nevertheless it is always wise to remember Ghandi’s apothegm about the market: When the elephants dance it’s the ants who suffer. And on the other hand it makes me remember what Magee said to me one tine: A mouse can go where an elephant can’t. So we arrange our affairs and try to stay out of the way of elephant hooves.