In the face of bearish newsflow due to the US Debt "issue" and the Eurozone Voedoo, the markets truly failed to get panicky this past week. The $SPY 130 level was challenged and defended by buyers, and we saw some premium sellers step into the market with the bet that we won't move south anytime soon.
If the markets stabilize here, odds are we will see a retest of 52 week highs and a breakout. However when we look at intermarket relationships we can see that risk appetite in other assets as clearly waned. The carry trade seen in $FXA and $DBV are looking weak, and the dollar via $UUP could be putting in a bottoming pattern. Back when the markets started to roll in 2008, the leading indicator was the carry trade, so it's something to be concerned about.
This topic is discussed in this week's Stocktwits Brunch, as well as:
- why there's no reason $AAPL won't move higher into earnings
- how high P/E ratios don't lead to lower prices (see: $LULU, $CMG, $NFLX and others)
- potential upside targets in $SLV
- whether the relative performance of $JNK to $LQD is signalling a market top
- why I'm still seeing $VRX in my dreams
- and much more
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