NEW YORK (TheStreet) -- Monday's trading session saw a bounce in risk-assets after heavy volatility and weakness last week. A number of announcements coming from technology companies helped lift markets, but technology leadership has, as of late, had no correlation with long term strength in risk assets. Evidence for this argument is presented later in the article.This weekend Federal Reserve Chairman Ben Bernanke stated spikes in inflation were not a threat to our economy over the near term. This is another way of saying that tepid growth will continue to be the norm. With GDP readings coming out this Friday, it does not seem like there is much of a chance that the reading surprises to the upside. Lastly, companies have continued to come out this earnings season with downgraded outlooks and more cautious speculation for future performance. Equity has been driven by corporate profitability as of late, so weak outlooks for the rest of 2013 could give reason for an equity pullback soon.
Currencies that did not see the same type of boost were commodity linked currencies. The Canadian dollar and Aussie dollar both showed indecision in the matter and have greatly consolidated in recent trading periods. The CurrencyShares Australian Dollar Trust ( FXA) over CurrencyShares Japanese Yen Trust ( FXY) pair shown above highlights this sentiment. Weakness out of China and overall fears for global growth look to keep this pair in a range. A pullback in U.S. equity should drive this pair lower as well.
Technology, due in large part to Apple, as seen in the table below, lagged the broader markets as equities raced to new highs. This does not say anything about future price action, but merely cautions that a strong technology sector may not keep markets from pulling back in the near future.