Wednesday, November 28, 2012

Stocks Heading Higher

I was skeptical that the bottom for this correction was put in just before a shortened holiday week. But the move higher the last few days and today have been strong.  Below is the Summation Index.
The Summation Index is a market breadth indicator.  Notice that it has crossed over the moving average and is heading higher.  This is a positive sign and signals higher prices ahead for stocks.  
The chart above is short and long term bullish as the index trades above the 10 day moving average and the 200 day moving average.  A test will occur just above at the 50 day moving average.  Otherwise today was a rather strong day for the markets with decent volume.  

Bottom Line:  The markets are looking poised for higher prices in the near term.  The index is trading above the 10 dma and the 200 dma, with a test coming above at the 50 dma.  The summation index has crossed over the moving average which is bullish and signals higher prices ahead for stocks. Thank you for reading.
 

Sunday, November 25, 2012

NOKIA - Before and After

We showed the technical pattern that NOK was displaying last weekend on November 17th below with a price target around $4.00.
The chart below, just a week later shows the break of the symmetrical chart pattern to the upside with heavy volume.  
Although our price target has not been reached yet, the move higher has the stock quite overbought in the short term and a pause if not a pullback would be necessary if higher prices will be seen in the weeks ahead.
The overall market eclipsed our correction targets of the 200 dma and the 50% fibonacci retrace above.  Although this looks like an oversold bounce higher with heavy short covering on a holiday week, we are giving the low, the benefit of the doubt for now.  

Bottom Line:  Even though NOK has not reached our preliminary price target yet, the stock is on a parabolic move higher, that does not look sustainable in the short term.  So we may use a stop or take profits after a +30% gain in just a few short weeks.  The overall market has eclipsed our price targets to the downside, and has put in a nice oversold bounce last week during a shortened holiday week.  Thank you for reading.
 
 

Saturday, November 17, 2012

Nokia Technical Pattern

Nokia (NOK) is one of the stocks we currently own.  I mentioned in a prior post the release of their new smartphone the Lumia 920 just this past week, which has received strong reviews.  The chart is showing a commonly known "symmetrical chart pattern".
From the above chart.  The symmetrical chart pattern is one that gets narrow as time goes on.  The volatility of the stock decreases.  Another characteristic is that volume also decreases as the triangle extends, which it has.  The potential breakout (higher or lower) of the triangle should include high volume.  The target price on a break out higher would be around the $4.00 area, or the width of the pattern when it started.  

Bottom Line: We hold NOK as a turnaround story, based on the release of their new Lumia 920 smartphone with Windows 8 as the operating system. Buying the stock from a technical pattern when it breaks out of the triangle would be a play for traders looking for a technical edge to the upside with an intermediate $4.00 price target.  Thank you for reading.
 

Saturday, November 3, 2012

Weekend Update

Fridays non-farm payroll report (+171K) was a positive report that the market originally liked.  But after an hour or two the markets gave way to lower prices and finished at the days low.  If the jobs report was positive, than what led to the sell off?  Below is a chart of the SPY and UUP (US Dollar ETF).
The above chart shows the inverse correlation that the US Dollar has with the S&P 500. Another words, as the dollar gains strength, the S&P 500 trades lower.  The US Dollar gained strength due to the positive job creation report before the markets opened and held that strength throughout the day.  
The chart above is the S&P 500 trading ETF with the 200 day moving average just -3.24% below.  Volume on the decline Friday was mild.
  
Bottom Line:  Regardless what the media attributes to the market being lower on Friday, or any day for that matter, it is really very simple.  Stronger dollar equals lower prices for the market as illustrated above with few non-correlation days in between.  Thank you for reading.

Contact: 586-431-8000
 


Saturday, October 27, 2012

Weekend Update

As mentioned in our mid week update, we are in a pullback (-4%-6% move lower) or a correction (-10% move lower from a high) at present.  During times like these, it is a good idea to take a longer term view and check the intermediate and longer term charts to gain some perspective.
Above is a weekly chart of S&P 500 index SPY.  Really does not look like much of a correction yet at less than -5% to date and compared to prior market corrections per chart above.  The up trend is still intact with the above weekly chart.  If we correct another -5% lower, the charts would still be in an up trending pattern.
Above is a monthly chart.  Fresh highs were achieved in September, so we can expect some sort of pullback from those highs prior to making new highs in the longer time frame.
The chart above is called a P&F chart, or point and figure chart.  P&F charts are unique because they do not construct charts based on time, it plots prices based on change of direction by plotting X's as the price rises and O's as the price falls.  The chart above has a bullish price objective of 168.00 or around 19% higher from Friday's close. 

Bottom Line:  As discussed in our mid week update, this market is trending lower and may have another (-3% to -5%) on a shorter time frame.  But looking at longer term charts, a pullback is the best thing for this market to experience for potential higher prices ahead. Holding a substantial cash position of 50% or more, and writing covered calls to gain some income for holding what we believe to be quality stocks will reduce some of the risks to portfolios.  We are currently 30-40% long at present. Thank you for reading.

Contact: portfoliomgt1@gmail.com

Saturday, September 22, 2012

Market Watch September 22, 2012

The market made a new high a week ago than pulled back just a bit.  So let's take a look at what the charts are telling us to gain some perspective on what the near term holds.  Below is a 60 minute chart of the S&P 500 fund (SPY).
From the chart above.  The 60 minute is in a neutral pattern neither overbought or oversold, just trending sideways at or above the moving averages.
The daily chart is overbought and can use some consolidation or a pullback to the 20 day exponential moving average prior to moving higher.
The weekly chart above, has just entered into overbought territory.  Prior to moving higher, I would expect to see some sideways to a small pullback. 

Bottom Line:  Charts are showing some overbought signals, so I expect next week we remain in a trading range to work off those conditions prior to resuming the predominant trend, which is higher.  Thank you for reading.
 

Saturday, September 15, 2012

Fed Pumps More Liquidity With QE3

Just to show how slow the economy is recovering, the federal reserve announced on Thursday the release of QE3 (quantitative easing three).  Under QE3 the government will purchase up to 40 billion dollars of mortgage backed securities per month
I want to focus on how the overall market and some specific commodity related assets have already appreciated this year to date.  Below is a chart of the S&P 500 (SPY).
This ETF is already up 18% for the year.  This chart has the look of some extreme front running the QE3 announcement.  The chart is extremely over bought on the daily chart. 
The chart above is the price of oil / barrel.  Notice that this is the highest price per barrel at 96.25 that a QE program has been initiated.  
Above is a chart of food commodities which include soybeans up 44% year to date, wheat up 41%, and corn up 21%.  Perhaps more QE front running has occurred within this soft commodity sector as well.  

Bottom Line:  Just about all markets have been priced extremely high.  If this was a telegraphed call that many traders have made in front of the QE announcement, than we should get a good pullback from today's prices.  The stock market and some commodity sectors are being priced at extremely high risk levels. Thank you for reading.
 

Tuesday, August 28, 2012

Saturday, August 18, 2012

Market Watch August 18, 2012

Divergence:  Is when the price of an asset and an indicator, index or other related asset move in opposite directions.  Divergence can be seen as positive or negative.  Three charts below show of such negative divergences against the S&P 500 making new yearly highs this past week.  First lets show the S&P 500 chart making a new high for the year below.  Click to enlarge.
The first divergence is against copper.  Copper is a leading commodity that is used in almost every building project whether residential or commercial.
Next is the transportation index.  This index is the most widely gauge of American companies moving products.  Again we see the negative divergence.
Lastly, the BPNYA is known as the bullish percentage of stock charts in the New York Stock Exchange.  Basically measures the breadth of the stock market.  With the market making new highs, breadth should confirm or be close to also making highs.
Bottom Line:  The market has made a new high for the year this past week. But there are some negative divergences as seen from the three charts above. The market can continue to move higher despite these negative trends, but eventually the negative trends will catch up, and stocks will face a correction. We will be sellers as the market continues to trend higher and eventually may initiate a short position in the market when the time is right. Thank you for reading.

Sunday, August 12, 2012

Market Watch August 12, 2012

Last week I commented on the markets being overbought from a shorter term perspective.  Last week some of those overbought readings were worked off. Not much has changed with the charts below.  But let's have a look at the 60 minute chart again.  A pullback to the 60 EMA shown below would be a decent entry point.
The daily chart below gained 1.07% last week, on one of the lowest volume weeks of the year.
The weekly chart below has not changed much either.  It is moving higher into the area where we may consider shorting.
Bottom Line:  In the past week the markets were neutralized, with a slight gain higher.  From a risk to reward standpoint, I would like to see the markets pull back some before initiating long positions again.  For now, it is a waiting game and being patient is what we need to be, until we get the move we are expecting.  Thank you for reading.

Monday, July 23, 2012

Front Running QE3

This article was published by Seeking Alpha here Front Running QE3.  Which we are not allowed to republish on any other site including our own.

Saturday, July 21, 2012

Spanish Bond Yields Rising

Markets sold off on Friday due to the stronger dollar and Spanish bond yields moving to the highest levels during the current debt crisis.  Below is a chart of Spanish 10 year bond yields, which is trading above the psychologically important 7% level.  Click to enlarge.

Bottom Line:  With Spanish yields moving higher, the whole union could be on the verge of unraveling soon.  As Spanish bond yields rise, investors are demanding more interest for the risk of buying those bonds.  The US markets have been range bound and holding up well under slowing growth and average earnings reports.  Thank you for reading.

 

Saturday, July 14, 2012

Still Range Bound

Even with Fridays move higher, we are still in the same range that I reported about last week.  Volume has also been below average.  So I would rate this market range bound until we get a full look at earnings.  Below is a chart of the S&P fund (SPY) with fibonacci retracement levels. Please click to enlarge.
Bottom Line:  We increased exposure in portfolios during the middle of the week.  I think the market still has some upward momentum to take it to (per chart above) the 138.00 area.  Thank you for reading.

Sunday, July 8, 2012

Range Bound Markets

Now that earnings season is upon us, let's look at a chart of the S&P 500 (SPY) to gain some perspective on where we may be heading.  Below is a daily chart showing the recent bounce high at 137.80 and the low on June 4th at 127.14.  
So from the above chart we have a trading range of 8.38%, ( 127.14 low to 137.80 high ).  Volume has been lackluster lately probably from a holiday induced week.  Gold has not performed well during the month of June. We will be looking to buy gold on any dip down to prior support.  We believe that the Fed may act and give more Quantitative Easing (QE) stimulus when they meet in September, and gold should perfrom well if that is the case.  Below is a chart of Gold (GLD) and the zone we may be interested in buying.  
I would view a good risk / reward entry of GLD at the highlighted green area shown on the chart above.  I believe we may get there within the next 1-2 weeks.  

Bottom Line:  The S&P 500 looks to be range bound for now, but may gain better direction once earnings season is upon us.  Gold is heading down to it's support area again.  I expect that area to hold as support, making buying GLD a lower risk entry point.  

Friday, June 29, 2012

Obamacare Passes

In a 5-4 vote Obamacare also known as the "Affordable Care Act" (ACA) passed.  We will have Obamacare starting in 2014.  In plain english, here are some of the highlights of the program.

Americans must sign up for healthcare by 2014:
Congress did order Americans to obtain - and to keep up every month - what it called "minimum essential coverage".  Congress in the ACA made the mandate depend upon an assessment for those who do not sign up or maintain health insurance.  For those who do not signup and maintain health insurance a federal "tax" will be imposed and paid to the IRS.  Whether you obtain insurance or not, you will be treated under the new act.

What is the penalty and how will it work when it goes into effect 2015 for 2014 tax year?
The "Affordable Care Act" (ACA) uses complex formulas to determine how much the penalty will be, but in general it is calculated each month the individual does not have health insurance, and it is to be paid as a flat amount or as a percentage of household income.  If it is to be a flat dollar payment, the law starts at $95.00 a year in 2014, $325.00 for 2015, and $695.00 for year 2016 (each month's assessment is 1/12 of those totals).  After 2016, the monthly amount is to be adjusted for a cost-of -living amount.  If it is assessed as a percentage of household income, it starts at 1% of a base amount in 2014,  to 2% in 2015, and 2.5% after 2015.  The failure to buy health care insurance shifts the cost for the uninsured to health care providers, insurance companies, and everyone who does have health insurance.

Medicaid:
The courts decision on Medicaid expansion is divided and complicated.  The main focus is. 
A)  Congress acted in offering states funds to expand coverage to millions of new individuals;
B)  So states can agree to expand coverage for exchange of those new funds.
C)  If the state excepts those expansion funds, it must obey by the new rules and expand coverage.
D)  A state can refuse to participate in the expansion without losing all of its Medicaid funds; instead the state will have the option to continue with its current no-expanded plan as is.

Bottom Line:  Stocks did not like the outcome of this act, as markets initially sold off after the decision was public, but later rallied to close down just slightly.  Health care companies were down with the market on an even basis. 
 

Wednesday, June 20, 2012

Fed Continues Operation Twist

Back in September of 2011 the fed chairman Ben Bernanke announced Operation Twist, which I wrote about here  Fed Announces Operation Twist. Today the Fed announced a continuation of the same program and that interest rates will remain low through 2014.  The continuation program of selling shorter term treasuries and buying longer dated treasuries is an attempt to keep bond yields low.  The program will run until the end of 2012 and will total 267 billion. The initial program was estimated at 400 billion, which is set to expire.  Similar to the original Operation Twist, the fed's balance sheet will not expand as it did during the release of QE1 and QE2 (quantitative easing).  How did bonds react after the announcement of the continuation of this stimulus package.  Below is the 10 year bond TLT.
This move by the Fed looks like it was telegraphed and expected weeks early as bonds put in an all time high as seen from the chart above.
Under QE1 & 2, the feds balance expanded by purchasing mortgage backed securities and treasuries, and the liquidity found its way into stocks, commodities and bonds worldwide.  I don't see this stimulus continuation being as equity friendly as the prior two stimulus packages, that did not see a rapid economical improvement when all was said and done anyway.
Bottom Line:  I am not sure what another few basis points lower will do to spur the housing market.  Also, unlike QE1 and QE2, this package will not have a direct effect on stocks or commodities, but should lift longer maturing bonds (lower yields) in an effort to boost the housing market. Thank you for stopping by.


Monday, June 18, 2012

Greece Kicks the Can

All eyes were on the Greece elections last night.  Greece voters chose to stay on the Euro and accept the bailout money, kicking their problems further down the road.  The markets originally liked this outcome over night, but since then the euphoria has worn off.  The Euro crisis is far from over.  Forget the headlines, let's look into the credit markets of specific country bond yields to see what they are saying.  Below is a chart of Spain 10 year bond yields, which have reached new highs today.
So the cost of borrowing for Spain has increased to new elevated levels.  I would have expected Spain 10 year bond yields to come down some, given the Greece elections have been decided.  Italy 10 year bond yields have also increased today, but not as much as Spain.  Below is a chart of Italy 10 year bond yields.  Not an all time high, but still elevated at over 6%.
Bottom Line:  The Greece elections were an important event to see if they would stay within the Euro.  Even with the outcome to stay in the Euro, the 10 year bond yield in Spain reached a new all time high of over 7%. One has to ask, has anything really been solved. Has the sovereign debt crisis disappeared or have they simply borrowed more time?
 

Monday, May 28, 2012

World Markets

Back in March  I posted the chart below here Weekly Recap 3-23-2012 to show world market performance from major stock markets around the world. Keep in mind, the chart below was year to date up to March 23, 2012.


The returns at that time were beyond exceeding expectations, the returns were outstanding for just three months into the year.  Fast forward to the same chart today of the same world markets and notice a much different picture.  
Since March, returns have vanished as the Brazil (Bovespa) Index is down -24% from the high.  The Japan (NIKK) is now down approximately -20% from its high.  The other country indexes have also fallen back from their highs ranging from -6% to -14%.  

Bottom Line:  The charts above illustrate that the current environment is not conducive to a buy and hold strategy.  I believe the world markets have put in a top in March, have sold off, and will remain under pressure throughout the year.  There will be oversold bounces higher, but I do not see new market highs achieved this year.  Thank you for reading.


Saturday, May 12, 2012

Facebook IPO - Sitting on the Sidelines

This article was published on Seeking Alpha here Facebook IPO - Sitting on the Sidelines.  The Facebook IPO on May 18,  presents a rare chance to own an ultimate consumer stock, a company that almost everyone has heard of, or is actively using as a social media gateway to the world.  More details why we elect not to participate in this IPO is in the article.


Saturday, May 5, 2012

ACOM - Wait Until A Lower Risk Buy Point

The last time I wrote about ACOM was their third quarter 2011 release here ACOM Third Quarter Results.  Ancestry.com released their first quarter 2012 earnings results on Wednesday April 25th. The company beat on top and bottom line vs. analyst expectations.  I wanted to dig a bit deeper into the numbers to see how the company's growth is compared to the past.  First, let's have a look at sequential revenue growth from 12 quarters back.  Keep in mind, I am looking at revenue growth from quarter to quarter.

2010 Sequential Revenue Growth
 7.2%  15.6%  6.5%  4.3%  = 33.8%
2011 Sequential Revenue Growth
10.0% 11.3%  1.8%  1.1% = 32.8%
2012 Sequential Revenue Growth  
 4.1%   6.9% est. 2.6% est.  2.1% est. = 16.3%

As shown above, ACOM is expecting a slowing of sequential revenue growth after the 2nd quarter release.  This should be viewed as seasonality, as the first and second quarter are the strongest quarters of the year.  But what stands out is the year/year growth drop off from 2010 and 2011 into 2012 of 16.3%.  Based on these numbers, it is understandable why ACOM announced it has purchased Archives.com for 100 million dollars on April 25th to potentially increase growth.

VALUATION:
I have a forward 2012 P/E ratio of 13.02 and a PEG (price earnings growth) of .62.  Both represent excellent value.  I have a price target based on PEG alone of $37.00 per share.

TECHNICALS:
The stock has good support in the $21 to $22 dollar range.  So I would be patient and wait for that area prior to starting a position.  Below is a weekly chart of ACOM.

Bottom Line:  ACOM has done a very good job of maintaining a stable stock price despite declining revenue forecasts.  They have initiated a 100 million potential stock buyback, plan on releasing new products, and has purchased Archive.com for 100 million.  The stock has strong support in the $21-22 dollar price range. I plan on remaining on the sidelines for now and will wait until the stock comes to a lower risk buy point in the low twenties until considering a buy.  Thank you for reading.

Friday, April 27, 2012

Celgene Reports 1st Quarter Results

Corporate earning releases are past history, and at times will have little effect fundamentally moving forward.Celgene's latest earnings release fits into this category well.  This report can be viewed at Seeking Alpha here, Celgene Reports 1st Quarter Results, as we are not allowed to reproduce the report on another website including our own. 

Friday, March 30, 2012

Month of March Recap

The markets returned +3.21% during the month of March.  A 3.21% return annualized is approximately +36% for the year, which is four times the average stock market return.  So it was a strong month for stocks.  Below is a chart of the S&P 500.  Notice the upward trend line support.
Celgene (CELG) is a major holding of ours and we began buying the stock in the low 60's.  The company has several near term catalysts approaching in the 2nd quarter and beyond.  I do not believe the street has given this stock the respect it is due.  Below is a chart of CELG.
Bottom Line:  The overall market is performing well and looks like the move higher will continue into April.  Celgene is a key stock of ours, and we await several near term catalyst to push the shares higher.  The company continues to buy back stock in the open market, and should continue the buyback until the stock hits $100.00 a share, which I believe can happen sometime in 2012.  Thank you for stopping by.

Friday, March 23, 2012

Weekly Recap 3-23-2012

Just a quick look at markets around the world.  Japan and emerging markets have outperformed this 2012 year to date.  The US stock market representative of the S&P 500 index (SPY) has trailed other parts of the world to date, but has still put in a healthy gain so far.  Below is a chart of select stock markets around the world and their year to date results.
As shown above, world markets are putting in healthy returns so far in 2012, with the Nikkei Index in Japan leading the way, higher at + 19.77%. 

Bottom Line:  The returns of these markets around the world have exceeded expectations during the first quarter of 2012.  For now, markets look healthy and are trending higher, but I am expecting a correction sometime during the next few months prior to the 2012 political elections.  Thank you for visiting. 

Tuesday, March 13, 2012

Celgene Chart Update

Celgene, (CELG) one of our larger holdings has made a multi-year high and is approaching the all time high set in 2008.  Today the stock moved on the rumor that Novartis (NVS) may be interested in purchasing the company for a huge premium at 115.00 per share price.  Though I do not give much credence to rumors, this one seems to make sense on several fronts.  The combined companies would become a Hematology leader worldwide. Below is a chart of CELG.  
The all time high for the stock is around 77.50, or just a 1.50 away from challenging that price.  Below is a monthly chart of CELG.
Bottom Line:  The overall market is moving nicely to the upside and CELG has just broke out to a new multi-year high is can now challenge the all time high of around 77.50.  Today's buyout rumor does make some sense, as the two companies CELG and NVS would have a nice Hematology worldwide product line.  Thank you for stopping by.  

Friday, March 2, 2012

Weekly Recap

The market looks a bit tired right now.  I would expect some sideways action or possibly a 4-6% pullback from the current area to relieve overbought readings.  Then a break higher above resistance to have a sustainable intermediate term market rally. Below is the support area I would expect the S&P 500 to pull back to.
CEN.TO Toronto, or (CENJF) US symbol, is a current holding of ours.  They are an oil exploration company with resources off the coast of Thailand.  This is one of the fastest growing companies that I have seen in the past 20 years. We originally bought in the 16.00 area and repurchased again around the 20.00 area.  Seventy percent of the stock is held by four insiders, making the float available to the public at about 35 million shares.  I believe the company will be purchased within the next 12 months at a premium to today's prices. Below is a weekly chart of CEN.TO.
Bottom Line:  The markets need some side ways to a small pullback, then a move above resistance to have a better chance of an intermediate market rally.  CEN has come a long way, but is still a cheap stock comparing its production and future resources, they should be an attractive acquisition for a larger company. Thank you for stopping by.

Disclosure:  Long CEN.TO 

Monday, February 20, 2012

Charts of Interest

Here's some charts of interest heading into a new and shortened week.  First the S&P 500 exchange traded fund  (SPY).  The S&P 500 has broken out of resistance and has achieved multi-year new highs.  The chart is oversold on a shorter term basis but there is still no reason to be shorting this market based on an intermediate term basis from the chart below.
The next chart of interest is the Euro.  The Euro has had a positive correlation to the US stock market.  In other words, when the Euro is appreciating against the dollar US stocks in general tend to outperform.  The chart really has not made up its mind which direction it will proceed, but it is well of the lows. Below is a chart of the Euro exchange traded fund FXE.
CELG is a large holding in the portfolios.  The stock is closing in on an all time high price of around 77.50.  Once it breaks that level, it will be trading in new high territory.  Below is a monthly chart of CELG.
Bottom Line:  The stock market has been resilient shrugging off average economic data and European debt issues.  The trend is heading higher as the market has broken out of several year resistance points.  There is absolutely no reason to be shorting this market based on the charts above, and I expect higher prices in the future.
Disclosure:  Long CELG
 

Tuesday, February 14, 2012

Chart Update

I still like the uptrend of the overall market here.  The S&P 500 is close to a breakout higher (above the resistance zone) that I believe will take it to the 140 level in the coming weeks. As long as the overall market is trending higher we can still hold onto stocks for the near to intermediate term time frame.  Below is a chart of the S&P 500 fund (SPY).
Bottom Line:  There is still the issue of a Greece default down the road that may have an effect on Portugal and other countries within the EU.  But for now, markets are willing to put those worries aside and focus on corporate earnings and a potential economic recovery in the US.  We remain about 90% invested.  Thank you for stopping by.

 

Tuesday, January 10, 2012

Market Recap - Tuesday December 10th

Three breakout charts below.  First the S&P 500 index ETF (SPY) breaking out above prior resistance.  Please click chart to view.
Although the S&P 500 has not been trading at very high volume, the volume today was 15% higher than yesterday, which counts for something.  Below is a confirmation chart of the transportation index, also breaking out higher.  
Lastly a holding of ours, CELG, has broken out higher on above average volume.  The breakout is a multi-year new high.
Bottom Line:  From a technical basis we have both the S&P 500 and the transportation index on breakouts above previous resistance levels.  On a shorter term basis the market is getting a bit overbought so I would expect some consolidation prior to extending the gains.  CELG a holding of ours has made a clean break higher on above average volume.  I am looking for more upside from them also.  Thank you for stopping by. 

Friday, January 6, 2012

US Dollar and Stocks

I have written about the non correlation between the US Dollar Index and stocks several times including most recently here US Dollar and Stocks. Another words when the dollar index was appreciating higher in value, stocks were falling at the same time.  This non correlation was extremely strong up to around September of 2011.  Let's have a look at a 4 month chart of the US Dollar Index and the S&P 500 with performance since this time.
Notice that both the S&P 500 is higher by 9.62% and at the same time the US Dollar Index is higher by 8.27%.  So the question becomes, has the non correlation been broken?  For the time being yes.  Part of this reason could be due to economic releases that have been better than expected over this past month, or that investment dollars are finding their way out of Europe and into US stocks while the dollar gains strength against the Euro currency. Thank you for stopping by.