As SP500 is about to make all time highs @ ~1,800 going into the year close, i wanted to discuss / document my thoughts on correlation.
Firstly, the FED is pumping $85 billion per month into markets. The market chatter is 'will they, won't they taper this QE'? If they mention a taper is on the table, it spooks the stock market and bond yields spike.
Let's start with the _US500 / SP500 / SPX chart, i.e. the American stock market:
SP500 (monthly) - relentless bull run
Now compare the SPX (red line) against 10 Year Treasury Note yields:
10 Year Treasuries spiked yesterday to 2.85 as SP500 started to paint red candles; if rates start shooting up, the US would be in a World of pain paying back their debt to the Chinese et al, so they keep pumping up stocks in the hope to keep rates low.
SP500 since week open
ZeroHedge posts many correlations when they occur, here's an FOMC move:
Another interesting correlation on ZH was this chart:
Do you think the QE funny fiat money they digitally print from nothing, goes to help mainstreet and businesses?
Firstly, the FED is pumping $85 billion per month into markets. The market chatter is 'will they, won't they taper this QE'? If they mention a taper is on the table, it spooks the stock market and bond yields spike.
Let's start with the _US500 / SP500 / SPX chart, i.e. the American stock market:
SP500 (monthly) - relentless bull run
Attached Image
Now compare the SPX (red line) against 10 Year Treasury Note yields:
Attached Image
10 Year Treasuries spiked yesterday to 2.85 as SP500 started to paint red candles; if rates start shooting up, the US would be in a World of pain paying back their debt to the Chinese et al, so they keep pumping up stocks in the hope to keep rates low.
Attached Image
SP500 since week open
Attached Image
ZeroHedge posts many correlations when they occur, here's an FOMC move:
Another interesting correlation on ZH was this chart:
Attached Image
Do you think the QE funny fiat money they digitally print from nothing, goes to help mainstreet and businesses?
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