The correlation between stocks and bond yields continues to have regime-shifted to approach -1 (not 1 – as is more ‘normal’) confounding asset allocators and risk parity funds across the market…
This seemed appropriate…
If that analogy didn’t help, maybe this will clear things up…
Small investor, shown here on right, with cash on the sidelines, waiting to dip her toe into the stock market waters. pic.twitter.com/3oNwFej4Rj
— Rudolf E. Havenstein (@RudyHavenstein) May 13, 2015
Gold and Silver were the big movers today… Gold’s highest close in 3 months (3rd biggest day of the year), Silver highest close in 6 weeks (3rd biggest day of the year)
But stocks and bonds continue to be sold…
Leaving Trannies ugly for the week…
After decoupling today once again…hugging the flatline from shortly after the open…
Futures show the real volatility took place before the open…
On the week, Treasury yields are dramatically higher (thioug below yesterday’s peaks) though we note the significant title in the curve with 2Y -2bps, and 30Y +6bps…
Which sent curves soaring…
The USDollar legged notably lower on the poor retail sales data extending its losses to over 1.1% for the week… (worst day for the USD since 3/20)
JPY had its strongest day (carry unwinds continue) in 2 months…
Here’s why… (via none other than Gartman)
To end our discussion of the forex markets, we think it is time to return to an old friend:long of the English speaking currencies/short of the Yen and we shall do so en masse this morning, buying the US, the Canadian, the Aussie and the Kiwi dollars against the Yen upon receipt of this commentary. We shall have stops on the trades individually in tomorrow’s TGL, but we’ll give them 2% against us as an initial stop point.
Commodities very mixed with oil down,copper flat…
With crude pumped after another draw but dumped after production rose once again…
