As the great Rod Stewart belted out “Every picture tells a story, don’t it?” I would like to propose one for your consideration that not only speaks a thousand words, but does so in volumes that makes every empty shelf worthy of holding a large encyclopedia collection envious. To wit:
The above is a chart of Apple™ as of the close of the U.S. “markets” today, represented via one week candles/bars. I have noted the chart and they speak for themselves. The reason for this is very, very simple…
Apple is currently not a “nosebleed” levels, but on a sheer out of this universe trajectory. What I have done is place a couple of boxes with arrows to highlight points in time over the past, near 20 months, to highlight what was thought or said – and what has transpired. They are not exact moments, but close enough for horseshoes and hand-grenades type analogies to make a point.
And that point is this…
The first box highlighted with the caption starting as “Two ideas were…” represents a point that both Apple and the Fed thought they were both in control of their relative narratives. Both were made aware very swiftly that neither would be even close.
For Apple – they have yet to produce the revenue and sales numbers matching that first area some 20 months ago. The Fed would find the need to reverse all prior statements, then to finally embark on a QE funding program the like the world has never seen or even dreamed possible. And, just so it’s not lost here – Tim Cook has increased buying back Apple-the-stock and increasing its payout of dividends basically matching the Fed in time and voracity move for move.
And yet I’m the supposed one that “just doesn’t get it.”
The issue here is – what happens when everyone else suddenly does?
As always, we shall see.
© 2020 Mark St.Cyr