Buy the Rumor

March 21, 2016

Sell the news.

Below is a spread of Apple versus Standard & Poor’s 500 index, to try and remove some market noise from Apple’s price action. A more complex chart with the Nasdaq 100, Dow Jones Industrial Average, and other indices might have been cleaner, but oh well.

It’s always fun watching a security react to live news. You can see a perfect example of “buy the rumor, sell the news” in Apple’s price action during today’s March 21, 2016 media event.

There were a couple of nice huge spikes of shares flying back and forth moments before an announcement was officially declared on my end, so I wouldn’t be surprised if some trading desk out there had eyes and ears within the hall, or was willing to just risk it.

Chart of Apple’ stock on March 21, 2016

Here’s the full image. I forward-fudged a few of the spikes slightly to account for latency, since it was obvious what they were reacting to.