In White is the synthetic 90 day repo rate created from the 10-year US Treasury Calendar Spread. In Purple is Apple Computer Shares. The question remains why are Apple’s shares almost 100% correlated to the 90-day repo rate? Apple is the largest company in the world by market capitalization. If there is a significant default in the repo market causing the repo rate to increase substantially, does this mean Apple’s shares will also increase substantially. If we were to experience a 2008 like collapse in the repo market, will Apple shares trade north of $1500 a share? If correlation is the guide, the market is expecting Apple Computers to be a beneficiary of rising rates in the repo market either via some hedge or some profitable way of participating in the repo market. Continue to monitor the Apple/90 Day Repo Market correlation.