Interesting Interlude: Addendum

I was asked by a colleague to square the following circle that went like this, paraphrasing…

“I read your latest concerning Apple™ and Tesla™ and I’m wondering why Apple is currently pushing higher and yet Tesla is not if all things are equal in your argument?”

It’s a great question and here’s my answer…

Although things are “equal” in the bigger or macro as I allude. When it comes to the micro or granular level of daily machinations, there is something that does mask the macro via the micro that can appear to be saying one thing, when in reality it’s saying nothing except is a phenom of the moment, a blip if you may, that does not truly affect the macro but looks like it can.

What’s that un-equalling factor in the micro? Buybacks.

Apple is the crowned king of them – Tesla doesn’t do them. So right now it appears everyone’s giving a “thumbs up” to Apple’s share value, when in reality, all that may be happening are the bots and algorithms front-running Apple’s own share buying – not the general public’s.

A distinction with a difference that needs to be not just back-of-mind as one tries to settle current machinations, but front of it.

Below is the visual aspect for proof of what I’m describing To wit:

Tesla…

(Chart Source)

Apple…

(Chart Source)

And for those that think “That’s just cherry picking the examples!” Fair enough, so then ask yourself why the following examples of recent stock performance also seems to coincide with the following. Ready?

Amazon…

(Chart Source)

Netflix…

(Chart Source)

Microsoft…

(Chart Source)

Google (Alphabet)…

(Chart Source)

Facebook (Meta)…

(Chart Source)

One last note one needs to also keep front of mind…

The Fed is now stating to both continually fund already spent money of such programs, as well as implement newer ones, they are going to get a whole lot more expensive, meaning, their efficacy to “Pump it up!” as sung by Elvis Costello goes from a vehicle to front run to “get in” and ride the wave higher, to a vehicle to “get out” before the money runs out.

Think about that very carefully and thoughtfully, because the ramifications if true are colossal.

I think the macro is beginning to show itself in unavoidable ways regardless of the micro.

As always, we shall see.

© 2022 Mark St.Cyr

Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.