If there is anything that can get this market going it’s the US Dollar.
And granted, the S&P500 did just close at a new all-time high. That did happen Friday.
But as we have documented relentlessly here, most stocks are not doing that.
The Average stock on the Nasdaq is down over 30% over the past few quarters.
Most Emerging Markets got destroyed. Chinese Internet is down 60%. Biotechs are crushed down almost 40%. The IPO Index killed. And ARKK Funds are down over 40%.
All is not well underneath the surface.
In fact, all of those sectors I mentioned peaked in February this year. That’s when the Nasdaq New Highs list peaked and Nasdaq Advance-Decline lined also peaked.
Most importantly (potentially) is that was when Aussie Dollar peaked, and I don’t believe that’s a coincidence at all:
Australian Dollar is a gauge of risk appetite around the world. Risk assets tend to be doing well if Aussie is strong. [Read more…]