One of the huge divergences in the markets is between commodities and stocks.
We’ve already talked this morning about the weakness in precious metals, but it actually extends beyond that to the industrial space as well.
Copper is looking bad today, as you can see via FinViz:
FinVizOne of the popular arguments is that markets are in the midst of a bubble being inflated by the Fed, and for a long time, proponents of this argument pointed to the strength in hard assets (gold, silver, industrial commodities) as proof of that the whole rally was about a flight from debased currency. But as these divergences exacerbate, and commodities continue to weaken (as stocks make all-time highs) these arguments look more tenuous, to say the least.