The DAX, which is a tech heavy index, can be compared to the FAANG index, can prove an easing this last session. The interesting thing about the concentration of speculative adhesion, where momentum overrides "value" or underlying fundamental principles-- there is a relative that even in U.S. equities that there is enough demand to support the risk-reward, even at these highs. Looking at the SPX relative to the rest of the world, can clearly show that it's lagging. (SPX/VEU), while substituting the NDX/VEU proves there is a narrow path of speculative preference. Looking at the counterparts--the DAX, Dow, and Nikkie; the Nasdaq 100 isn't a great representation of this. These are the companies that remain in the headlines, so people continue to concentrate their bets, which is classic in nature and has happened throughout every depression in history. There will be balancing coming into the future, where things get a little more complicated. Where could a trigger be, at what price, and when--for such a broad environment? This is unpredictable, however when casting aside fundamental issues it's a bad approach and ripe with false flags and mis-priced valuations as the market's continue to try to pick tops and bottoms.
11:11:18 (UTC)
Wed Jul 8, 2020
11:11:18 (UTC)
Wed Jul 8, 2020
