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Wednesday, November 13, 2013
Connecting Some Dots
Picking up where we left off earlier today, we are seeing conditions stretched to extremes in both emerging markets (relative to the SPX) and the Australian Dollar. Tangent to our description in that note of a shift in intermarket correlations this time around the block, the performance relationship for this series is flipped as well. The long and short of things: in the short-term we are looking for both the Aussie and emerging markets to outperform.
From a comparative perspective, it appears the Aussie took the expedited path for this retracement decline. In either case, we would be looking for a healthy bounce to reappraise.
Rounding things out is an update of our 2011 BKX comparative with the miners that continues to point towards a prospective breakout for the group in the balance of the year.
