The first major Yuan devaluation was one year ago, meaning an entire year of extreme risk has been ignored.
The S&P is trading in the narrowest range in 40 years, while diverging from every other risk asset on the planet.
MW: July 29, 2016
The S&P 500 Hasn't Done This In 40 Years. And it's Bullish
It's bullish when stocks ignore risk. What else could it be?
Current divergences:
GDP
Profits
Deflation/Treasury yields
Oil/commodities
Financials
Retail
Energy
Healthcare
Growth/Tech
IPOs
Small Caps
High Yield/Junk Bonds
Carry trades
Rest of World
Transports:
S&P / Russell Ratio:
Amazon
Versus
Sears, Credit spreads, US 10 Year, German 10 Year, Deutsche Bank, Global trade (BDI):
