As I’ve said in the past, there are stocks, bonds, commodities and Apple Inc. Apple has become its own asset class and an incredibly impressive one at that. What happens with Apple is not a new economic indicator for the broad economy but more an undeniable endorsement of an amazing product and brand. With this said, it certainly has created a feel good about the general market following through on yesterday’s IBM helped rally. Underlying the strength though is another rally in the debt of Italy, Spain, Ireland, Portugal and even Greece. With respect to the US debt ceiling, the US Treasury market has for months sent the message that it’s going up, whether on Aug 2nd or days after. The only question is what strings are attached with it. Ahead of the Existing Home Sales figure where we’ll see how the market responded to the spring selling season and ahead of that the MBA said refi’s rose 23.1% bouncing off a 10 week low, finally responding to low mortgage rates. Purchases though were flat and are down 4 of the past 5 weeks. II: Bulls 46.2 v 44.1 Bears 21.5 v 22.6, Bulls at 2 month highs, Bears at 6 week lows.
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