$SWKS Sell-Off In Sep Brings Down $AAPL, $QQQ

source: stockcharts.com
Look how Skyworks Solutions ($SWKS), a major chip supplier for Apple's iPhone 5, got liquidated in September after increasing its revenue and earnings expectations for Q3 (9/20/2012).

In the chart below I compared the 6-month performance of Apple ($AAPL), $SWKS, other iPhone suppliers ($TQNT, $AVGO), RF Micro Devices ($RFMD, a SWKS competitor), and the Nasdaq 100 ETF ($QQQ). I've noticed that the market, or tech indexes first, usually follows the performance of $SWKS.

Previous posts:
  • *Skyworks Retraces 2009-2011 Bull Move, Market Following (SWKS, RFMD, SOXX, AAPL, SPY, DIA Performance) (June 11, 2011)
  • *Skyworks Breaks Out of 8 Year Channel (SWKS, RFMD, TQNT, SMH, AAPL, QQQQ) (July 28, 2010)

See, market transparency is a good signal for publicly traded securities. Tell that to the credit default swap market. For example, there is no transparency in Hewlett-Packard's CDS on the web like its stock, options, and even corporate bonds at FINRA. But it appears to be major news when there is CDS activity, and nobody outside of hedge fund or too-big-to-fail bank land can see quotes/charts or even trade it. It's all hidden in bank trading desk/hedge fund landia to put on large capital arbitrage positions. The same trades occured in subprime mortgage-backed securities and synthetic CDOs in 2007. Interesting right?

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