The summer doldrums are here, regardless of last week’s volatility. For starters, no one wants to look at the markets when everyone else is out barbecuing. More importantly, there are so many diverging signals that no one wants to take large positions (e.g. do you go long Apple here or not? Will the Fed step up QE or not? Was that ISM figure positive or not?). Similarly, bonds seem to have found a bit of stability and are looking for direction. And yet, the secret is in the divergences we are starting to see.
A growing divergence between oil and stocks
Written July 2nd, 2013