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Gold Looks Like Its 2008
Near term record high negative correlations between equities and gold. Looks like 2008 all over again.
If one looks closely at the data though, in 2008 the negative correlations peaked approximately a month before the Lehman event. On August 15th, 2008, the prior 50 trading day correlation hit -.59. At this point the S&P was still at approximately the 1200 area (before then plummeting to the 600s). When things really started to unravel, gold lost its magic touch as an effective hedge.
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This time is different...
Just thinking out of the box...
1) multiple margin hikes
2) The University of Texas Retirement Fund took delivery based on their findings that if 5% of the contract holders took delivery the Crimex couldn't deliver.
3) Paper has a longer histroy of being money than Gold or Silver throughout time <SNARC>
4) A gold mining company just got Nationalized.
5) Now WE know AND now THEY know WE know.
But at the end of the day you really miss the point Dear Chart Monkey...we love it when gold & silver gets smacked down unlike stock holders who hate it when stocks get smacked down...huge difference.
Isn't ready yet, but the S&P correlation to bird migration chart is ready. Both are going south!
I'm short charts...
Tyler we need a section for these types of posts. Basically an observation and a chart. I liked this because it's a possible major move that we could research more. A strategic ( non forex) pair and sector trading section would be welcome. Beating up on posters is fun and commenting on political stupidity is also a blast. But. I trade for a living and there are a couple of people that are on top of the markets and provide ideas. But it in between hundreds of one line poster blasts that create noise. Let me know
My pairs that are interesting TLT spy, TLT USO, spy xlu, Xle xlf, Dax spy, gld slv, goog appl, wnr xom, ge xlf.