NEW YORK ( TheStreet) -- Just when we were preparing to sell additional Apple positions on Monday because of the continued selling pressure on the stock, the action reversed in a major way.
We figured that the hedge funds were following though with their selloff attempts of last week but at 1:30 pm EST, it all changed as Apple skyrocketed $10.
|Apple CEO Tim Cook|
What might have caused the jump? Most likely it came from leaks connected to Tim Cook's trip to China. The last thing a selling hedge fund wants to discover is that there is good news hitting during a supposed quiet period.Cook is proving to be less predictable that Steve Jobs was. We've seen it with the dividend, the delayed iPhone 4S release, the iPad name, the quick responses to market rumors, Cook's unexpected presentation at the Goldman Sachs conference and now this surprise China trip. In the past, short sellers loved using Apple because its secrecy and calendar driven innovation opened the stock up to uncontested manipulation during the quiet periods. That precedent may be coming to an end. The threat of Cook disrupting a pre-planned selloff is not good for the shorts. This kind of action proves that our increased core position in Apple was and is the right move. Instead of selling to 70% to 90% cash during an expected selloff like we did last year at