From the desk of Steve Strazza @Sstrazza
We have been writing a lot about risk-appetite lately as we’re constantly trying to gauge the “animal spirits” at work in the markets. Right now we’re seeing a lack of participation from risk-assets such as Small-Caps, Commodities, and the more cyclical sectors as well as a risk-off theme in many of our intermarket ratios.
We’ve covered the US plenty already, so this post will focus on what we’re seeing from risk-assets in Equity Markets abroad.
This week’s Mystery Chart was an inverted chart of the Frontier Markets ETF (FM). Thanks to everyone for participating. You were pretty much ALL buyers this week, which means you were actually selling Frontier Markets against their prior all-time lows.