Thursday, October 1, 2009

Treasuries...what divergence?


thanks to matt fraily, breakpointtrades.com

The chart below is from a post called: All we need now is a big hit to theoretical money - derivatives anyone? I think its worth another look at this point.

Observe the chart below. Each large move in the SP500 was preceded by  period of correlated behavior between treasuries and stocks. We are presently in a significantly correlated pattern.
 


 
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