The Apple-Fear yin-yang big bang effect

Once again, AAPL and VXX are locked in an unholy death grip. Find beauty in that, if you will. Since Apple's delicious earnings report yesterday, its equilibrium balanced out for the first time in weeks, overcoming all those vile rumors of iPhone 4 recalls by hedge pimps. 

Shares rallied yesterday and opened today at 265. Pretty forking amazing considering AAPL was down to 240 just one day ago. If you believe the hedge predators aren't at work on both ends of that deal, you may as well stay out of harm's way and watch from the bleachers, Section AA, Seat 14. I'll gladly sit in Seat 13 since I do not believe in luck, but understand that there is human nature — manipulation, lies and deception — operating quite well in this beast of a market. 

Of course, the hedge snipers then took their profits, banking 20-25 bucks a share in a 24-hour span. AAPL dropped to 258 just one hour into today's session and held there. Things were clearing up as expected until Uncle Ben's pronouncement at 2 pm Eastern. That sent a meandering market stumbling down the slopes. AAPL is now trading at 254.85, slightly about its intraday low, but still up 1.5%.

VXX, which tumbled recent days, spent much of today below 25. In recent months, any price below 25 has been a huge buying opportunity. Sure enough, Uncle Ben's pronouncement roughly 80 minutes ago sent VXX rocketing to 25.99. It is now trading at 25.76. 

The yin-yang has resumed for AAPL and VXX. Until Uncle Ben clarifies his statement — tones it down — the market will be refueled by this uncertainty and fear. Longs are wise to hedge their shares of Apple with a sprinkling of VXX. Doesn't take much to provide adequate protection.


Note: Barclays opened a new ETF today to counter VXX. The new issue, XXV, may as well play as yin to VXX's yang. Worth watching. 

I remain fully in cash.