Treasuries and the dollar got some attention from investors today as traders took profits after a four day run up in stocks. The euro rose today and the dollar continued its weakness. The September 2012 rally may not have faded yet but downward pressure is putting some investors in defensive mode. There was no real news today accept for some unrest in Asia but stocks may be going towards new resistance levels and could have fallen for technical reasons.
We are still bullish medium and long run due to movement in tech and small caps which are still above our benchmark levels. Apple hit a new high today which suggests investor sentiment hasn’t turned sour after the Fed announced a massive new round of easing (QE3) last week. We are continuing to watch Apple as a market leader and overall sentiment indicator along with tech and small caps. The TLT bond exchange traded fund caught a bid but we don’t think this is sustainable. Apple hit the $700 mark today reaching an all time high and although short-run it could be under some downward pressure, the run rate of the 50 day moving average is positive.