WHAT APPLE-FACEBOOK WHAC-A-MOLE ACTION MEANS FOR BOTH STOCKS
An interesting see-saw price action has developed between shares of Apple (AAPL) andFacebook (FB). When Facebook stock goes down, Apple stock goes up and vice versa.
Going into the Facebook IPO, it made sense that investors were selling Apple stock to raise money to buy Facebook shares, but when Facebook did not open as high as some had hoped for, investors started selling Facebook and putting money back into Apple. When Facebook broke the syndicate bid at $38, the floodgates opened and money poured into Apple. As the chart shows, Apple staged an explosive rally.
Today, Apple opened strong, and went up in the morning, but when Facebook shares stabilized, money started pouring into Facebook and Applestock started falling. … Please click here or the title below to read more.