Seasonality will be heavily on bulls’ side ahead of Labor Day weekend, but stocks will be bucking powerful headwinds thereafter, since September is historically Wall Street’s worst month. This September will be particularly interesting if two fledgling trends gain momentum. Specifically, the dollar has turned up from a promising spot, and AAPL for a rare change closed lower on the day. The psychotic spasms that undercut Apple shares apparently were caused by news that euroland’s regulators are taking a close look at the company’s app store. Investors have reason to be fearful, since it is a monopoly business that makes Microsoft’s criminal lockhold on web browsers 25 years ago look like pattycakes.
The dog-bites-man story of the day was the oh-so-sly rotation of money into the Indoos and the S&Ps. With AAPL getting hit, DaBoyz took OPM ordinarily earmarked for the FAANG/lunatic sector and pumped it into the broad averages. Another day or two of this and the parabolic blowoff that has seized the Nasdaq 100 will infuse itself into the Dow Average and the S&P 500.