World Events Have Center Stage
For the first time in a while we saw upward movement yesterday into the traditional risk-on instruments such as the utility stocks (XLU) and treasuries. Normally this is not a big deal because it’s normal behavior but because it has not occurred recently, it may be a sign that markets are beginning to move as they traditionally have. If this is true, then a normal oversold rally may ensue.
World events have center stage and that will dictate market movement. Should the markets ignore the US airstrikes in the Iraq (along with Putin not making a move) and a rally ensues today, it will be telling us that the worse is likely over and prices (barring a global flare-up) will be moving higher.
Today’s Potential Opportunities on Further Pullbacks:
ETFs: SPLV