Dress Those Windows

To follow-up on our discussion about Apple from earlier this week, the premier stock in the world just surpassed $3 trillion in market cap today on a gap up above an incredibly steep rising channel (daily chart, below, highlights all of this). Once again, you are talking about a stock at trading thirty times forward earnings, with slowing growth.

And this is all as we head into July, with what is now fairly ubiquitous knowledge that the coming month has extraordinary bullish seasonality. 

Simply put, can it really be this simple?

Stocks have ignored rates, the Yen, the Dollar, and a myriad of other divergences. 

But fund managers are making sure to have certain mega cap names on their books for clients today, otherwise known as month/quarter end "window dressing."

Thus, the issue is when we kick off the new month and quarter, especially after the holiday next week, if the same appetite exists now that the chase by fund managers has likely been pulled forward to as to get the big, marquee names on their book for Q2. 

As a reminder, markets will be open Monday but they close early, at 1pm EST (2pm for the bond market) before a full closure on Independence Day on Tuesday. Hence, expect many folks to be away from their desks until at least next Wednesday.