Risk Off Alert Is Flashing Red

My favorite risk indicator is flashing a warning light again.

This time it is red.

Note that the currency cross is diverging from the new high in the S&P 500.

Given the overextended nature of the market at present, this could be a time to put on hedges and consider safety sector purchases.

Gold stocks have had a nice little correction today and may soon offer a tremendous value buy.  We will need to wait to see what unfolds.


Post a Comment