Stocks worldwide continue to show weakness, with Germany and Australia showing some positive relative strength vs. the US markets.
Commodities, particularly geo-politically sensitive oil and gold and agricultural products are showing relative strength vs. equities. US Treasury Bonds appear to be the best bullish macro trade, and the TLT's typically inverse correlation to stocks is holding true during this pullback. See the full macro list, ranked by relative strength, here. It's unusual to see dollar weakness and euro strength during a world wide equity pullback, yet we see that here. Perhaps this is driven by the Fed Minutes which imply the Open Market Committee will keep rates low for an extended period after Q/E is put to bed. This may be trumping the flight to safety which usually boosts the dollar as bulls liquidate long equity positions.
Commodities, particularly geo-politically sensitive oil and gold and agricultural products are showing relative strength vs. equities. US Treasury Bonds appear to be the best bullish macro trade, and the TLT's typically inverse correlation to stocks is holding true during this pullback. See the full macro list, ranked by relative strength, here. It's unusual to see dollar weakness and euro strength during a world wide equity pullback, yet we see that here. Perhaps this is driven by the Fed Minutes which imply the Open Market Committee will keep rates low for an extended period after Q/E is put to bed. This may be trumping the flight to safety which usually boosts the dollar as bulls liquidate long equity positions.
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