Comments on: Lots of Insignificant “Noise” in the Markets Today

By: GetItRiight

GetItRiight — Wed, 30 Aug 2017 18:07:26 +0000

In reply to rsotc. Randy, you should pull up a chart of USD/JPY (inverse) and gold to see the close correlation.

By: rsotc

rsotc — Wed, 30 Aug 2017 13:39:51 +0000

I should also add that the correlation between gold & the Euro that @schooner pointed out seems to be a very tight one, with little deviation, at least in this 4-day chart comparing EUR/USD & /GC (gold futures, as both trade nearly around the clock):

By: rsotc

rsotc — Wed, 30 Aug 2017 13:32:06 +0000

I pulled a chart overlaying EUR/USD & /ES (S&P 500 emini futures) for the last 4 days & it appears that the correlation between the EUR/USD & /ES (S&P 500 emini futures) flip-flops from positive (green) to inversely correlated (red arrows). Again, that just 4 days so if I get a minute I'll make a comparison over some longer periods of time. Here's that chart:

By: GetItRiight

GetItRiight — Tue, 29 Aug 2017 19:22:52 +0000

In reply to schooner. That yen sell off to drive down gold had an effect on the indices, I am sure, due to the carry trade: sell yen, buy dollar, then buy US bonds and equities. Bastards.

By: schooner

schooner — Tue, 29 Aug 2017 19:02:43 +0000

As to gold, just look at the chart of the Yen…trades almost tick for tick with gold, feels like a central bank stepped in to knock them both down. Feels very much like the really big money got nervous with those breakouts. Edit: Actually I stated that wrong — the Yen got propped up which has the effect of knocking gold down. And it got propped up at key support at old lows.