What happened to Apple earlier today? About 9:50 a.m. ET it went from roughly $117 to $111, a fairly significant drop of over 5 percent. Huh?
The usual market rumors quickly surfaced: A fat-finger trade was the most common. There were also product rumors, none of which seemed plausible: iWatch, iPad, even hacking rumors.
Occam's Razor says the explanation with the fewest assumptions is usually the correct one. In other words, the most likely explanation is usually the right one.
After talking to several traders, here's the explanation with the fewest assumptions: Someone sold a ton of Apple. Very fast.
Volume was very high during that minute, and on either side of it. More than 6.5 million shares traded in that one minute; Apple normally trades about 50 million shares a day.
That's a lot. There were a few large 50,000 or so share bids came in, but they kept getting taken out and the stock continued to drop.
That suggests a large seller.
But most of the trades were the usual, boring few hundred shares at a time.