By Dana Lyons of My401kPro.com
In terms of global reach, the post-February equity rally has been a fairly broad advance. Some markets, most notably the U.S., have resumed their former relative strength while other regions, like emerging markets and Latin America, have seen strong mean-reversion bounces from very oversold levels, One region conspicuously lagging during this rally, however, has been Europe.
Unlike yesterday's overnight session, which saw some substantial carry FX volatility and tumbling European yields in the aftermath of the TSY's anti-inversion decree, leading to a return of fears that the next leg down in markets is upon us, the overnight session has been far calmer, assisted in no small part by the latest China Caixin Services PMI, which rose from 51.2 to 52.2 (even if the employment index dropped to a three year low, suggesting China's labor problems are only just starting).
Submitted by Thad Beversdorf via FirstRebuttal.com,
I keep hearing that the past 6 or 7 years in equities is just part of an even longer term secular bull market. And it strikes me very curious that investors continue to pay these fee based money managers and chief market strategists who continue to sell this theory.
Let me show you a chart...
...and then provide a very brief parable for you to consider.
2015's positive return for The S&P 500 was rescued at the last second...
Because nothing says "efficient markets" like a last second VIX panic-selling to jam S&P up 3 points into the close... and save the green close for the year...
Close up it all started exactly one minute before the cash close...
Keeping the green alive!
While breadth and seasonals are constructive, BofA's Stephen Suttmeier warns complacent put/call, VXV/VIX, and volume distribution are April risk factors.