Market signalling “Risk-on”?
With plenty of political risk still in the air, and long term disaster inevitable (imho), the market is hinting that another leg up may be the market’s next move. The “risk-on” currency of choice, the Euro, has finally broken its downtrend as the expansion-funding instrument of choice, the US Dollar, pushes towards new lows:
Since the bull market low in 2009, tech has led the way higher. It looks like tech is ready to lead the charge again. AAPL broke out the upside weeks ago, and in the chart below, you can see how the QQQ:SPY ratio is exploding the upside again:
Despite fairly flat and choppy performance from the indexes in recent days, these clues indicate to me that the market bias may be leaning towards another up-leg.