'Fast Money' Recap: Apple's Big Reversal

NEW YORK (TheStreet) --The markets were pulled down Wednesday by a big reversal in Apple(AAPL) and another delay in Greece's debt deal.

The Dow Jones Industrial Average dropped 97.33, or 0.76%, to 12,788.95. The S&P lost 7.27, or 0.54%, to 1343.23. The Nasdaq fell 16, or 0.55% to 2915.83.

Melissa Lee, the moderator on CNBC's "Fast Money" TV show, said Apple closed at $498, down 11.46, or 2.25% for the day.

Joe Terranova said he had been waiting for a pullback in Apple after its parabolic move higher following its earnings. He said Apple is trading more like a commodity future than a stock. He said investors should be less long in the stock.

Tim Seymour said traders seem to have been taking advantage of the Apple's parabolic move up after its earnings to short the S&P into expiration.

Lee said Apple is so huge that it contributed to one-half of the decline in the Nasdaq 100 and one-fifth of the drop in the S&P.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Mike Khouw said the options activity in Apple was unusually strong, with most of the trades short term with an expiration for Friday.

Karen Finerman called today's trading "ridiculous," saying it's hard to believe a stock can lose $30 billion in market cap in two hours with nothing happening.

Lee indicated there were rumors that the Nasdaq 100 might rebalance to lessen the impact of Apple.

Carter Worth, a chartologist with Oppenheimer Asset Management, said Apple's technical behavior today had all the earmarks of a key technical reversal. He said Apple had been riding a mature intermediate move from $360 to $525 before today when it hit sharp new highs interday, closed at an absolute low, and saw volume expand dramatically.

He said he would take profits in the crowded trade, adding he sees the stock moving down to $450. He said investors would be taking on a lot of risk by "staying blindly in the name."

In the same vein, he said Starbucks(symbol) is also at the end of a mature intermediate move after it jumped from $35 to $50. He said one one has to ask who's going to be the incremental buyer of the stock at this level.