correlation

The AUD/JPY Divergence Dragging on the Stock Market

Deteriorating market breadth flashed warning signs for the stock market once again. A signal from the currency market is adding weight to the warning: the Australian dollar versus the Japanese yen (AUD/JPY). AUD/JPY represents the divergence dragging on the stock market. AUD/JPY topped out from March to June, a period over which many individual stocks … Read more

A Surprisingly Consistent Relationship for JETS and Traveler Throughput

The Relationship At its height last March, the U.S. Global Jets ETF (JETS) still could not close all its pandemic-driven losses. JETS was a 5.9% gain from finally returning to where it last traded at its 200-day moving average (DMA) (the blue line in the stock chart below). Similarly, the number of travelers at U.S. … Read more

Kb Home Falls Further Behind the Homebuilders ETF (XHB)

(This is an excerpt from an article I originally published on Seeking Alpha on May 31, 2012. Click here to read the entire piece.) The SPDR S&P Homebuilders ETF (XHB) has remained amazingly resilient during the stock market’s latest rendition of the “sell-in-May” swoon. {snip} Source: FreeStockCharts.com I believe this trading action is consistent with … Read more

Correlations Are Broken But Australian Dollar Still Leads The S&P 500

(This is an excerpt from an article I originally published on Seeking Alpha on May 26, 2012. Click here to read the entire piece.) The Australian dollar…{snip}…has been highly correlated with the S&P 500 (SPY) for much of the last six years and more. The correlation has broken down at critical moments, the most interesting … Read more

S&P500 Performance By Day of Week and The Changing Nature of Trading Tuesdays

(This is an excerpt from an article I originally published on Seeking Alpha on May 7, 2012. Click here to read the entire piece.) After the S&P 500 (SPY) dropped as much as 0.4% on Monday, April 30, 2012, I decided to take a shot at trading what seemed to be the double whammy of … Read more

Bearish Implications of A Rare Convergence of Extremes in Yen vs S&P 500 Correlations

(This is an excerpt from an article I originally published on Seeking Alpha on April 9, 2012. Click here to read the entire piece.) In tweets and various posts, I have harped on the renewed strong relationship between yen strength and market weakness. In “Weakness in the Japanese Yen Is Over for Now, Part Two“, … Read more