Has the stock market divorced itself from the financials?  Given the performance of the market lately it seems that the foreclosure crisis is but a blip on investor radars.  The market as a whole is approaching the April highs while the financial sector is at best, plodding along.  For a market that has become obsessed with macro-type trades this action is interesting.  How this divergence gets resolved remains to be seen.  Investors need to keep an eye on the foreclosure crisis to watch for spillover into the general economy.  In today’s screencast we look the market’s glaring divergence.

Posts mentioned in the above screencast:

AAPL (AAPL) at a new high.  Bank of America (BAC) at a new low.  Seems about right.  (Howard Lindzon)

Daily chart of Apple and Bank of America.  (Finviz, ibid)

Financials hit a brick wall.  (Leigh Drogen)

Daily chart of the Select SPDR Financial ETF (XLF). (Finviz)

Why don’t the markets care about the foreclosure crisis?  (Ezra Klein)

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