Apple (AAPL) was down 2% yesterday and roughly 9% since September 19. Given AAPL’s weight in the Nasdaq 100 (20%) and S&P 500 (4%), its decline is making it hard for the broader market to lift. Technical analysts see a head and shoulders formation in the AAPL chart. The stock closed yesterday at its 75-day moving average. Fundamentally, the stock was sold on news that a supplier, Foxconn, is facing labor strikes at its manufacturing plant in China.
The IMF cut its 2012 global growth forecast to 3.3% from 3.5%.
The Chinese stock market gained 2.0% on Tuesday on word the People’s Bank of China pumped approximately $40 billion more into money markets and that regulatory authorities are exploring ways to improve market access for qualified foreign institutional investors.
There was 21x normal options flow in Hudson City Bankcorp (HCBK) yesterday. Investors were mostly closing Oct 8 calls. The stock is up sharply in the past month on rumors that it will merge with West Coast Bankcorp (WCBO). It appears that options traders believe the stock is now at the high end of its range. In Cigna (CI), there was an opening buyer of roughly 7500 Nov 55 calls. Tonight, Adtran (ADTN) reports earnings. The stock is at its 52 week low – down 40% this year. There was a major put spread opened involving the Oct 16 and 15 puts, 5000 times. It appears the Oct 16 puts were sold and the Oct 15 puts were bought. If this is the case, options investors believe the down move in the stock has a floor at roughly $16.