“XLK, which has $72 billion in assets under management, will increase its allocation in Nvidia from roughly 5% to more than 20% and drop its allocation of Apple from about 21% to 5%, reversing the stocks’ positions in the ETF with Nvidia becoming the second largest holding.
“‘XLK will be a forced seller of ~$11 billion worth of $AAPL and a forced buyer of almost $10 billion worth of $NVDA in a rebalance… assuming Nvidia remains larger than Apple at market close on Friday,’”
If Jensen Jackets sold $31m worth of shares today and NVDA is down 3.54 on the day, wtf is XLK buying $11b worth of shares gonna do?
TL;DR NVDA go brrrr 💵
https://finance.yahoo.com/news/xlk-rebalancing-reverse-apple-nvidia-213000015.html
Posted by justCairo
24 Comments
But when
Is all the buying limited to one day, or has it been already happening leading up to tomorrow?
Tomorrow it breaks $150 LFGGGGGGG 
What when would this purchase be made? And what is the time to settlement, if any?
I see $190 tomorrow boys
Tomorrow will likely be more red. Not because I am bearish, but because it is realistic. It will go up, but not tomorrow.
That’s like .00000001 of their market cap lol. Not enough to even move the needle
why is xlk so weirdly weighted (sounds like its not market cap weighted?)
Something that I think so many people are missing is that $XLK is not the only one rebalancing. Literally everyone is. It’s quadruple witching. Do you think no one else wants to add $NVDA to their portfolio? Guess again. Not only that, but today’s shake out added to the short interest. Any spike and these guys are going to be forced to cover. I would not be surprised at all if this hits a new all-time high tomorrow. However, I would be shocked if it is in the red. $SPY is being sold off by institutions so they can load the boat with $NVDA at open.
Wouldn’t the buying have to occur on Monday since the line in the sand for action is Friday close?
What would 10B got to do with a nearly 3.5 trillion company?
Coping and wanking to this post after buying calls this morning at 9 AM.
June 28 calls.
holding 142 6/21 and spy 542 6/21. my XLK 237.5 is showing -11,000 vega
Just watched a nice video about this , if anyone is interested …
[https://www.youtube.com/watch?v=KLlis1NGFF4](https://www.youtube.com/watch?v=KLlis1NGFF4)
50 comments and not one of you has uttered the golden words – “priced in”. Tomorrow if it drops, or doesn’t move, everyone will become the expert and say “priced in”.
Actually the play might be to buy the dip in something that lost weighting. That would be AAPL.
So hold NVDA calls till close?
I was at 170% profit when it hit 140$ today but I didn’t sell , exp 7/19
Don’t these large exchanges take place off the exchange and between institutions?
$NVDA It’s hilarious how people are trying to make a big deal about the CEO selling $31 million in stock, decreasing his holdings by a mere 0.275% while at the same time saying an ETF $XLK buying $11 billion in stock, increasing its holdings by 15%, is insignificant. Be real, just tell us that you messed up and shorted or bought puts into the close, not realizing that it was a gigantic bear trap. On the bright side, if you liquidate your bearish positions at open and open some bullish positions, you could break even by the end of the day. Perhaps you’ll even make money.
The day they do this, NVDA will go up.. I believe it is tomorrow 6/21, right?
> If Jensen Jackets sold $31m worth of shares today and NVDA is down 3.54 on the day, wtf is XLK buying $11b worth of shares gonna do?
well, this isn’t about the amount. It’s about optics. “If CEO isn’t vested in company then why should we be?”
People over reacted though. He is still plenty vested and is normal diversifying, but knee jerk “omg, insiders are selling” reaction.
So how do they do this? Do they just put a Market Order in for $11 Billion and let it rip?
“Fuck it, it’s Friday, let the market deal with that shit.”
When would they actually buy it? Friday? Over the course of next week? I’m assuming they have a large MM that can do it OTC or something.
This just shows you how absolutely regarded hedge funds actually are. They choose to buy Nvidia after the largest run in history. But they should have been buying it months ago.