3. Here another case of insider trading as the recent weakness of Apple is clearly based on the fact that Nasdaq will reduce the weighting of Apple from 20% to 12% which some knew in advance as usual as once that news gets official Apple will be hammered and the chart has a Head and Shoulder pattern suggesting exactly that. Since Apple is one of the heaviest crowded long bets for Hedge Funds it will create big volatility the next days with a downside bias. The other point is that probably a health situation of Steve Jobs in the near future might drag the whole market down but by reducing the weighting that risk gets reduced.
Nasdaq 100 Rebalancing To Reduce Apple Weighing From 20% To 12%
Submitted by Tyler Durden on 04/05/2011 07:07 -0400
In what could easily be the biggest news of the day, even more important than the most recent Chinese rate hike, the one stock that determines the broader stock market level more than any other, Apple, may well get crushed today as index arbs dump it following news that the Nasdaq 100 intends to announce a rebalancing which will see AAPL drop from a 20% to a 12% weighing. According to the WSJ, the move is akin to what various exchanges do when they hike margin rates to prevent commodity prices from surging: “The rebalancing was driven in part by the seemingly unstoppable rise in Apple shares, which are up more than fourfold in the past two years. The tech company’s big weighting means that a change in fortune for the maker of iPhones, iPods and iPads has a huge impact on one of the most heavily traded indexes in the market. After the rebalancing, which takes effect May 2, Apple will make up 12% of the Nasdaq-100.” Whether this will be the end of the company’s relentless rise remains to be seen although any impairment in the sensitive ecosystem of technical factors that has so far prevented any fund from selling the company may well be impaired at this point, leading to the first bona fide sell off in the name in the past 3 years.
From the WSJ:
The move could mean significant selling pressure on Apple shares by money managers tracking the index. Because of the way the index has been calculated, Apple was given more than twice the weight in the index than it should have had based on its number of shares. Under the new plan, it will be reduced to the weight it should have given its size.
4. The biggest winner currently on political and economic scale are Iran and Russia both will love rising oil and both share the advantage of vanishing influence of America in the Middle East. No one dares to attack Iran anymore as Israel has bigger fish to fry with a destabilization of the Middle East they are losing some supporters but on the other hand the supporters of Israel can make big bucks with the trouble as they might gain more control over the oil reserves at the end since they simply will buy off who ever wins control at the end – where is nothing a few hundred millions in bribe could not fix.
On a global scale the hyperinflation train has left the station and we will have the full impact soon as the food and energy inflation should become dramatic soon as the Japanese and Middle East events will drive prices to insane levels but mostly due to radiation plenty supply will not be sellable and the same amount of consumers will have to share far lesser supply – make your own math. For a while they will sell contaminated food though as they still cover up the whole mess or let people drink contaminated water.
Radiation Experts: Radiation Standards Are Up to 1,000 Higher Than Is Safe for the Human Body
Submitted by George Washington on 04/04/2011 18:24 -0400
The U.S. federal drinking water standard for radioactive Iodine-131 is 3 picocuries per liter, but levels exceeding that by many times have been detected in rainwater sampled in California, Idaho, Minnesota, Ohio, Pennsylvania and Massachusetts.
Radioactivity has also been found in milk from Spokane, Washington.
Safe Levels of Radiation?
The government says there is no danger, as the exposure is only short-term, and federal drinking water standards assume a constant level of radiation over the course of a year. In addition, not all of the radiation from the rainwater will end up in the drinking water supply. So – say federal and state governments – there is no danger from short-term exposure to such levels of radiation.
So that means it’s safe, right?
Well, as I pointed out recently:
Physicians for Social Responsibility notes:
According to the National Academy of Sciences, there are no safe doses of radiation. Decades of research show clearly that any dose of radiation increases an individual’s risk for the development of cancer.
“There is no safe level of radionuclide exposure, whether from food, water or other sources. Period,” said Jeff Patterson, DO, immediate past president of Physicians for Social Responsibility. “Exposure to radionuclides, such as iodine-131 and cesium-137, increases the incidence of cancer. For this reason, every effort must be taken to minimize the radionuclide content in food and water.”