Update: Apple Approaches Regulatory Limits in Technology Sector

I say again, bulls are out of ideas.

Apple is heading for its highest-ever relative close versus XLK. By my math, it is now about 24.8X percent of XLK.

Regulations limit the size of any one holding in a mutual fund or ETF to 25 percent of assets. Funds don't have to make a decision yet because compliance is quarterly. If Apple outperformed moving forward though and held that lead, passive technology funds would become forced sellers by mid-November. This works in both directions. My expectation is this situation will not come to pass because these "impossible" situations have a way of resolving themselves.

Update: I had a put position on for October in Apple back in August that I covered during this rally. I had almost no position since then. As of today, I now have three-times the position I had before with about 4 percent of the position in November puts.