$AAPL has had significant trading in the dark pool lately. Mostly due to the typical earnings run up. We’ll talk about Apple today and what this company is all about. First lets look at the dark pool chart of AAPL below (July 14th):
This is nothing new for $AAPL in the dark pool, in fact, dark pools have been selling Apple stock heavily ever since the split. AAPL split on August 31, 2020. The 4 to 1 split meant that for every share of AAPL you had before the split, you now have 4 shares afterwards. For example, if you had 56000 shares before the split, after it happened you will have 224000 shares.
Now today weâ€™re taking a look at Apple (NASDAQ:AAPL) stock and how its recent bull run has taken it to new all-time highs. Apple is the worldâ€™s largest company by market cap, with a staggering $2.4 trillion valuation, and is the single largest weighted portion of the benchmark S&P 500 index. We all know their innovative and trademark products like the iPhone, iPad, Macbook computers, and the Apple Watch. But recently the tech giant has been moving into higher margin software services like podcast subscriptions, Apple Pro App Bundles, and beefing up its digital payments side with its Apple Pay platform.
Not only is Apple a popular stock amongst retail investors, but the institutional investors love it too. How much does big money love Appleâ€™s stock? Of the 16.7 billion shares outstanding for the company, an estimated 58.5% are held by institutions. That is nearly 10 billion shares! But it makes a lot of sense if you think about it. Shares of AAPL are included in every S&P 500 index, every NASDAQ index, every tech index, every large-cap index, every Dow Jones index, and the list goes on.
If we look at insider ownership, Apple actually has a very small percentage of its shares allocated to executives and management. Is that a bad thing? Not necessarily, especially in the case of a company like Apple. Less than 1% of shares are owned by insiders, yet in total itâ€™s still valued at over $1 billion so donâ€™t feel too bad for them.
AAPL Dark Pool Activity
Recently, Apple has been on a bullish uptrend after trading within a fairly tight range for nearly a year. Like with many large-cap companies, Apple has fairly predictable behavior which leads to long periods of consolidation. But you know what they say: the longer the base, the larger the breakout. Apple broke through previous resistance levels to form a new all-time high price this past week, and patient traders were rewarded. But how can you take advantage of these swings and how can you know when one is about to happen?
Dark Pool activity is an excellent indicator of bullish or bearish sentiment from institutional investors. Dark Pools are private exchanges that are only accessible to institutional investors, because of the large blocks of shares that are bought and sold. If these blocks were traded on the normal markets, they would most likely cause massive price swings that would heavily impact smaller investors. There is also little regulation or transparency in dark pool trading, so dark pool exchanges can be susceptible to things like insider trading. While these things may carry negative connotations, normal traders like you and I can utilize this data to our advantage. Follow the big money, because oftentimes these institutions know something that we donâ€™t!
Letâ€™s take a look at the AAPL dark pool activity throughout this last year from some tweets I posted.
Dark Pool Charts Trading
So now you can see why using this dark pool data can be invaluable to improving our trading process. If you are an options trader, following dark pool charts can alert you to trading opportunities. When you’re in the know, things like options sweeps and large call or put contract blocks look different. If you can get in a position while options premiums are still low, you will have a serious edge over other retail traders who don’t understand the flow.
As of today, the dark pool indicator remains bearish (July 15th, 2021) See chart below. Earnings are end of month, and they are still taking profits.
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Try a free 7-day trial today and see why using the software is the best way to track the smart money and see where that flow is heading before anyone else on the market!