Chart above: Apple share price (yellow line) vs Blackberry share price (candlestick) for today March 22nd, 2013.
(click chart to enlarge in new window)
US Markets ended the week on a high note with NASDAQ leading the way up 0.94%, followed by S&P 500 up 0.84% and Canadian markets squeezing in a positive day up just 0.09%.
Our chart of the day (above) is today’s price chart of Apple (Ticker: AAPL) and Blackberry (technically still Research in Motion Ticker: BBRY). Notice the large price drop in Blackberry shares around 10:30am which was the precursor for the decline of the stock for rest of the day.
The price drop appears to be the result of a large sell order causing a volume spike of 2 million shares and pushing down prices and shaking investor confidence. Likely to be a hedge fund or institutional client as the dollar value of the trade was over $32 million.
SiAlpha system alerted our trading desk of the abnormal volume and we initiated a short position in the stock immediately. Partially closing the position by end of the day.
Wishing everyone a safe and wonderful weekend.
SiAlpha has a POSITIVE rating on Apple shares in the short and medium-term.
SiAlpha has a NEGATIVE rating on Blackberry shares in the medium-term.
Disclosure: Our SiAlpha multi-strategy portfolio has a net short position in Blackberry shares. No position in Apple but likely to initiate position in next week.