Our oversold/overbought indicators remain bullish. In addition, our short-term and long-term indicators are bullish. This caused us a little pain last week when the market declined, but we're riding this upward leg right now...
Correlated Markets
Recently, we mentioned how many markets had started to move together as stocks continued to move straight up from the March lows. Most commodities were generally moving higher (including energy, metals, grains, softs) as were risk-related / high-interest currencies such as the Aussie and Canadian Dollars. When markets become correlated, traders must be careful and monitor their overall portfolio risk. Last week's markets were a wake-up call as currencies, gold and other markets followed the stock market's lead downwards.
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