Third Test Of Lows Comng

The Dow and S&P500 are on their way to a third test of Feb. 9^th lows.  The S&P bounced slightly off the 200-day into the close on Friday.  Maybe a little more to the bounce on Monday morning as traders place their bets, but we doubt it will hold as long-term buyers now seem to be on strike.    The intraday low at 2,532 will also most likely fail, in our opinion.  Stress, opinion.

Something big does feel afoot.   Tectonic plates are shifting.  The end of easy money and a shift away from the “financial engineering mirage.”

Is this the end of the liberal world order?

After a run of nearly one thousand years quipped the French philosopher and writer Voltaire, the fading Holy Roman Empire was neither holy nor Roman nor an empire. Today, some two and a half centuries later, the problem, to paraphrase Voltaire, is that the fading liberal world order is neither liberal nor worldwide nor orderly. – Richard Haass, CFR, March 21

<Seat Belts>.

Random thought:  We hear much about how the corporate tax cut has changed the game for profits.   Isn’t this just the government jumping into the financial engineering game?  Did the underlying economics of Apple really change?

That is will it increase a companies revenues?  Generate new products?   Will economic profits change, not just accounting profits?

Apple needs more than just a tax cut and financial engineering.  Maybe a new product, or two?