By Christine Hughes, Canada. Chief Investment Strategist, OtterWood Capital:
Apple has been one of the most important stocks leading this market rally and some use it as a proxy for the market. When you look at a graph of the S&P 500 and Apple, it’s not surprising since they have been trading together pretty closely this year (the correlation is over 0.70).
But the pair recently diverged after Apple reported disappointing earnings, breaking the tight correlation. Could Apple be signaling the market may face some trouble ahead?
By Christine Hughes, OtterWood Capital
China is stoking the currency war. Asian stocks plunge. Copper, oil hit multiyear lows. It’ll put Apple under pressure too. Read… All Heck Breaks Loose After Freaked-Out People’s Bank of China Devalues Yuan Again
Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.