While the plight of the Euro is attracting everyone’s attention as of late you might be missing developments in the so called commodity currencies relative to the Yen. We have found in the past that the CADJPY and AUDJPY more often than not lead the behaviour of the CRB Index (the commodity market) and we [...]
Posts from ‘March, 2010’
Five Charts to Rule Them All $VTI $DBC $IYR $UUP $TLT
The five charts below depict more or less all that one needs to know about the behaviour of the five big asset classes. We have a strong upward trend in equities and real estate, inconclusive action in commodity and treasury markets and what appears to be a change in trend (from bullish to bearish) in [...]
The Smart Money is Buy Greece and the Euro is Set to Rocket $FXE
The behaviour of smart money suggests that the Greek crisis is now a mere storm in a tea cup. OK so what is smart money and how do we track it? Well in essence there is no “smart” money, that is, there is no group of players (with consistent members that is) who consistently makes [...]
Five Charts to Rule Them All $DJP $IYR $VTI $TLT $UUP
Just a few months ago weakness in the USD resulted in strength in commodities and equities and weakness in US Treasuries. But now all that has changed…….although so it seems! What will happen if the USD Index falls materially lower? Well we think it is quite likely that the correlations between asset classes will once [...]
A Powerful Rally is Underway in Real Estate Stocks $IYR
Judging by the mood of the market buying real estate stocks would have to be up there with the most dumbest of things to do! Yet seemingly against all odds the real estate sector, in its various shapes and forms, is one of the star performers of the stock market this year! What is driving [...]
Five Charts to Rule Them All $VTI $DJP $TLT $IYR $UUP
Crunch time perhaps? We are coming to a critical juncture in US financial markets and as strange as it may seem it appears that equity markets are leading the way. Equities, as per the Vanguard Total Market Index at least, are in a perfect up trend. In fact small caps as per the Russell 2000 [...]
PIGS Credit Default Swaps Suggest the Storm is Passing $FXE
While everyone is transfixed on the impending “default” by the Greeks and problems of the Portuguese, has anyone noticed that Credit Default Swaps on the PIGS government bonds (and Greece in particular) are lower than were they were trading at on the 1st of February? Could we go so far as to say that the [...]
