Wednesday, August 26, 2009

Morning Market Briefing for August 26th: Renewed Risk Aversion

With USD trading stronger and oil and gold weaker and 10-year Treasury yields on the decline, the risk themes are aiming more toward risk aversion, and that has stocks trading at the lower end of their recent range (ES futures; chart above). Note continued heaviness in emerging markets (EEM); that, along with commodity weakness, continues to raise yellow flags for me longer term.