Wednesday, May 2, 2018

The Lehman Singularity

While gamblers are salivating at the big cash payout from Apple, the rest of the world has other concerns...

"The legislation signed into law late last year opened the window for corporations to repatriate cash held abroad for a one time levy"

Feb. 21, 2018
ZH: Libor Blowout Due To Tax Repatriation Concerns

"it is impossible to overestimate the importance of this story and we are seeing the effects already in a number of ways."

Which gets us back to the title of the post. Exactly three months ago, the last of the big cap techs, Apple, reported their earnings. After that the wheels came off the bus. So not only did short-covering ahead of the Fed meeting coincide with that time period, but so did Apple's earnings report.

And, oil.

What we have here are well-conditioned hairless monkeys, picking up nickels in front of a steamroller:

CNBC: Sept. 2015 Welcome To The FOMC Stock Rally
"It's called "The Pre-FOMC Announcement Drift." Traders have been aware of this phenomenon for years

the returns over those eight yearly FOMC meetings accounts for 80 percent of annual realized excess stock returns."

"It will be painfully ironic if Trump tax reform, seen by virtually everyone as a slam dunk for higher stock prices as a result of the hundreds of billions in stock buybacks it enables, ends up being just the catalyst that breaks the market"