We’ve endured six years of Fed interference and here we are today – approaching all time highs in the indexes and all time highs in Apple. We overlaid Apple on the NDX on April 21, 2012 and August 30, 2012. Notice the correlation? And when markets tank after Yellen’s rambling tomorrow at 200p, we should expect markets to rocket and roll over by Friday or Monday of next week – and guess what? You can expect Apple to do the same.
Remember too that downside moves don’t give much warning (this can be said too about the V-bottoms too, but when Yellen stops being a nuisance and gets out of the way, this is not the case). Now that POMO has ended, the Fed has about $100B notional, by our estimates, in bond interest revenue that has more than likely been most spent as POMO was cut back over the past four months.