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EURJPY Back To Perfect Correlation With The Market
Risk on - short yen for euros, buy stocks. Rinse, repeat. EURJPY back to 1.000 correlation with the S&P. Algo signals working AOK.
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Does that tentatively mean that EURmageddon unexpectedly has not happened?
NFP effect, wait after lunch
The Federal Reserve is a Den of Thieves. Filthy Fucking Thieves!
I love that oil is approaching $82/barrel. Fuckers want to drain us for every last cent, don't they?
Funny, I did the same thing in a bordello in Amsterdam just this past Tuesday.
In your spare time, as you sit in awe of the Fed's liquidity, feel free to review this seriously macked out daytrader's set up, 40 monitors, plasma, left wall, right wall, center console. Even some of those Goldman traders are going to feel a pang of jealousy.
http://www.fundmymutualfund.com/2010/03/his-is-way-bigger-than-yours-one-day.html
Obsessive compulsive disorder to the nth degree. Or penis envy taken to new ...er...lengths.
So... ramp GS through resistance yesterday on absolutely no news and heavy volume. Open APPL higher on bad news and ramp the future higher in pre-market BEFORE the jobs number comes out today. Then spin the living hell out of the jobs number... presto. Market higher.
TraderMark,
Is he/she making money?
Is the incorrect grammar his/hers or the article author's (monitors and computers are plural...)?
Yes, I know, anal, but it colours (I'm British) my reading of posts or articles if the grammar or spelling isn't correct (and, yes, I am forgiving of anyone whose first language is NOT English).
DavidC
/:
I feel better now.
Equities are a conversation with an excitable boy. Debt is a slow, grinding dialogue.
Derivatives are a house with Guy Fawkes working away in the basement.
Leadership. Morals. What's my cut?
Tyler,
I'm presuming that you're relating the EURJPY to the US stock market, because it certainly doesn't closely correlate with the UK stock market, which as been going up, up, up since February 25th (low around 5260) to todays high (around 5605) - not to mention 5th February's low of around 5010.
And yes, I'm losing money - this move just beats me. The correlation between the FTSE and Dow/S&P has also fallen.
I can only think of two reasons 1) conspiracy theory - the banks are finding it easier to pump up the FTSE and 2) there's a currency effect that's making the FTSE seem cheap, even if the UK is in a worse fiscal position that the US.
Or am I talking rubbish?
DavidC
Agreed - FTSE is normally slave to DJ/SP futures but it has been ratcheting up even when the latter are flat: +6% in the last 6 days. Looks like a currency effect (ie FTSE is 'cheap' to foreign money) but cable has recovered (to a degree) from its lows, and still no end of the rise.
Actually, it perfectly tracks the S & P 500 Futures, not necessarily the market itself. When the US market is open, the futures are reflected in the price but when the European market is open, notice how well it tracks the SP futures, regardless of the movement of the FTSE/DAX.
The miscorrelation you have noticed in Europe is coming to a close. The Pound Sterling has been getting crushed by the Euro but the turnover occurred last night. Going forward, you will see more of a correlation between the EUR/JPY as well as the EUR/GBP with the FTSE/DAX/SP500 futures: all will be going down.
Looks like Soros is going to lose a boatload of money on this (short the Cable...) gambit. Too bad...
:D
Happy trading!
As I have pointed out prior, the strategy is to avoud the big loss while other stuff looses then when the dollar falls the s&P ramps up.
THE ENTIRETY OF THE MARKETS IS A CRIMINAL FRAUD
"As I have pointed out prior, the strategy is to avoud the big loss while other stuff looses then when the dollar falls the s&P ramps up."
The S&P hasn't been ramping up anything like as much as the FTSE.
The dollar is not falling, it's gaining.
DavidC
When you say "short yen for euros" do you mean shorting EURJPY or going long Euros and shorting Yens, both against dollars?
It's almost all over for a short time until QE 2.0.
Fed prints money to buy MBS. Those who sell to them now have a ton of cash and buy UST and Corporates. Those who sell the UST and Corp now have a ton of cash and go and buy stocks.
It ends soon....... market pukes....... repeat with QE 2.0
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