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AH! If it were only so simple!!!
If you are a short to intermediate term trader; there will come a day when you
wish some
pin head had never come up with the concept of
'non-correlation'. Those times when correlation exists are too painful
for
the time and patience it takes for
'non-correlation to work over the 'long term'. I'm thinking stocks
and commodities here;
primarily. You know; they are supposed to
move in opposite directions? Just my 2
cents and I'm sure someone will vociferiously disagree with me. (:-) I can't say if the same exists for
stocks/bonds, etc.
Chas
----- Original Message -----
Sent: Tuesday, May 31, 2005 3:13 PM
Subject: [RT] Parallel moves
For some time now, SPY and XLE (Energy Select Spyder)have been
moving in tandem, even on 5min. charts. Any ideas as to the fundamental reason
behind this phenomenon? Shouldn't these markets be inversely correlated, if at
all? I.e., shouldn't stocks go down when energy becomes more
expensive?
Best regards,
Michael
suesserott
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