Apple's dark day: Conspirators rejoice?

So is it a conspiracy or not?

I love that word, conspiracy. The answer, before I go into more detail, is no. Of course it's no. The broader question is, how did a bogus question turn into a widespread rumor and assumed fact regarding Apple's iPhone? Even CNBC's Money Honey, Maria Bartiromo, said the rumor was triggering major selloffs of AAPL on the trading floor.

Apple shares sank to $131.52 near the close and finished at $131.76 at the bell. The stock is rebounding a bit in after-hours at $132.85. The rumor apparently started at TheStreet.com, which is primarily run by a former hedge-fund boss. The stock closed with a 6.8% decline, which should cover the bases for any and all hedgies who needed to cover. That is, if you believe there has been a conspiracy.

The market in general was unkind and moody, which set the stage for Apple's lousy day. Amazon took a 5% hit and closed near its low at $78.54. The Nasdaq closed down 37 points, or 1.4%, while the Dow Jones was down 146 points (1.1%). The DJ had been up more than 140 points early in the day.

So, with three pathetic days out of the last four, have the bears taken over the market for the rest of summer? Or is it simply major selling of winners by the street to cover for sub-prime hell?

Whatever the reason, the best companies with high-flying stocks are paying the price in the short term. Who dares to buy here instead of waiting out the storm?

Pupule Paul is long AAPL.