• Are Treasuries The Last Diversifier Left?
    Leo Kolivakis
    07/30/2010 - 17:29
    In the first quarter, the US economy grew by 3.7%, revised up from an originally reported 2.7% increase. But growth estimates all the way back to the start of 2007 were revised lower. Moreover, the level of real GDP in Q1 was revised down by $100 billion. Does this mean the secular bull market in bonds will continue? And are Treasuries the "last diversifier left"?
  • Japan: Land of the Rising Debt
    Vitaliy Katsenelson
    07/30/2010 - 13:51
    The Japanese economy operates on the assumption, soon to be proved false, that the government will always be able to borrow at low interest rates. As internal demand evaporates, the government will have to start hawking its debt outside Japan — in a more realistic world, where interest rates are a lot higher.
  • An Open Letter to President Obama
    Phoenix Capital Research
    07/30/2010 - 09:55
    Dear Mr. President, You don’t know me, but I was one of the millions of Americans who voted for you in the last election. I have since been fairly critical of your Presidency largely because I, like many others, feel betrayed by the policies you have enacted upon winning said election.

Implied Correlation Hits New Six Month High

Tyler Durden's picture
Submitted by Tyler Durden on 10/30/2009 12:28 -0500



The implied correlation reading between all asset classes has hit a 6 month high at 65.50, a jump which mimics the surge in the VIX. High implied correlation readings are indicative of crash risk/expectations.

5
Your rating: None Average: 5 (1 vote)

»


by TraderMark
on Fri, 10/30/2009 - 12:31
#115291

Boo Yah!

No real support (other than governmental) until S&P 1020

if that breaks, 990

http://www.fundmymutualfund.com/2009/10/bookkeeping-added-some-short-hed...

 

If S&P falls 5% my prediction is ZH website crashes by joyous reader influx

by Cindy_Dies_In_T...
on Fri, 10/30/2009 - 12:33
#115292

I'm sorry Trader, I see your Avatar and it always reminds me of Zombie Kool Aid on Robot Chicken:

 

"Ohh--YEAH" as he rips off heads.

 

sorry hehee

by MinnesotaNice
on Fri, 10/30/2009 - 13:14
#115333

Geez... what the hell happened to the market during the 2 hours I was away from the screen... I hate it when I miss the 'good stuff' that I have been waiting the last 6 months for :-)

by Takingbets
on Fri, 10/30/2009 - 13:24
#115344

No shit, I had a doctors appt. this morning and missed all the fun! I hope to see lots more red in the weeks to come. Boo yahhh!! 

by chumbawamba
on Fri, 10/30/2009 - 12:53
#115306

GOLD BITCHES!!!

I am Chumbawamba.

by waterdog
on Fri, 10/30/2009 - 12:54
#115309

Oh come on guys, today is no different than the supermarket changing the sell by date on green ground beef.

by Anonymous
on Fri, 10/30/2009 - 19:31
#115757

Perfect 10.

We have adopted a new Level 3 Assert Pricing Policy that we like to call "Mark to Green Beef".

by lsbumblebee
on Fri, 10/30/2009 - 13:02
#115319

So THAT's what all the insider selling was about.

Damn it! Caught me off guard. I'd better consult "Getting Back to Even" by James J. Cramer.

by spekulatn
on Fri, 10/30/2009 - 13:47
#115374

Well done, Isbumblebee!

 

"MARK IT ZERO, DUDE"

by Anal_yst
on Fri, 10/30/2009 - 13:04
#115321

what's the baseline here, i.e. is this a 0-100 reading or what?

by Daedal
on Fri, 10/30/2009 - 13:28
#115349

Where's Spekulatin'? Civic duty calls, so I'll fill in.

Mark it ZERO!

 

by spekulatn
on Fri, 10/30/2009 - 13:49
#115379

Sorry Daedal, I was on the can, then I bought some more of the shinee stuff ;>}

 

"MARK IT ZERO, DUDE"

by Anonymous
on Fri, 10/30/2009 - 13:41
#115364

that's NOT what this index (the ICJ) shows. it is ONLY correlation within equity per CBOE:

Beginning in July 2009, CBOE will begin disseminating daily values for the CBOE S&P 500® Implied Correlation Index. The CBOE will disseminate two indexes tied to two different maturities – January 2010 (“ICJ”) and January 2011 (“JCJ”). Both ICJ and JCJ are measures
of the expected average correlation of price returns of S&P 500 Index components, implied through SPX option prices and prices of single-stock options on the 50 largest components of the SPX. Each day, CBOE will publish the index values four times per minute, and provide on its
website the market value weights of each of the top 50 stocks in the S&P 500 Index. Historical information dating back to 2007 will also be available.

by Anal_yst
on Fri, 10/30/2009 - 14:54
#115484

thanks for clarifying

by surfer
on Fri, 10/30/2009 - 13:47
#115375

Is that bloomy chart a CIX or a function, transparency pls, CIX declare function whats behind??

 

BTW huge appreciation for the site as a interest rate trader youve been worth a (small) fortune

by Anonymous
on Fri, 10/30/2009 - 13:59
#115397

Dumb question I guess, but looking at that chart, how is 65.5 the 6 month high?

by reading
on Fri, 10/30/2009 - 14:41
#115469

It's a 2 year chart...follow the red line back 6 months

by Anonymous
on Fri, 10/30/2009 - 16:38
#115612

Not as much crash risk expectations, as expectations that the S&P has become a commodity. There are no differences between any of the underlying stocks. All that matters is what the Fed does, and all the stocks react the same. The market no longer cares what individual firms are doing. Investing in a 'good company' is no longer meaningful.

by Anonymous
on Sat, 10/31/2009 - 01:46
#115949

ABSOLUTELY SPOT ON !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.