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Guy,
The decoupling of T bonds and stocks started affecting my system last
October, when stocks tanked and the 30 year T bond hiccupped for a
couple of weeks, then continued up. In hind sight, I attribute the
strong bond to buying from Asia.
The closest that I can come to approximating the signals that I used to
get with bonds is to use the Russell 3000. My time frame is 3 - 6
months. Surely the decoupling is just temporary, isn't it???? I will
have to see my bond system work for 2 more correct calls before I will
rely on it again.
D. M.
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Has anybody else noticed a decoupling of the T Bonds and equities? Our
trading system has used the Bonds to confirm our S&Ps trades for the
last
twelve years with great success. In the last month or two, I've
noticed
that Bonds seemed to have decoupled from the equities market and that
we are
better off trading our basic S&P system without Bonds confirming.
Is this a temporary decoupling of Bonds and equities caused by the
Asian
economic crisis or is it more permanent in nature?
Is this the beginning of the end of the bull move???
<snip>
Any ideas or thoughts would be appreciated.
Regards
Guy
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