Bonds correlation

Discussion in 'Index Futures' started by lwlee, Feb 17, 2006.

  1. lwlee

    lwlee

    I've been reading a number of daytraders' books that mentioned how they use the bond market to forecast SP futures.

    Is this still the case? If so, would the 5yr, 10yr treasury bonds be good indicators?
     
  2. Neodude

    Neodude

    You have been reading Pitbull, haven't you?

    -Neo
     
  3. Sure. Markets are all inter-related and influenced by the same reports and events but in different ways. What were they saying?
     
  4. Surdo

    Surdo

    Steve:

    Nice job covering down @ 112!
     
  5. Neodude

    Neodude

    I think most of these correlations are based on the fact that when money is flowing out of bonds it tends to flow into stocks which causes the indicies to rise. Then there is the whole deal with portfolio balancing, changes in interest rates which effect margin reqs, etc etc.

    -Neo
     
  6. Biog

    Biog

    Check out this site for correlations for all markets:

    http://www.mrci.com/special/correl.htm


    The correlation between bonds and the equity market has changed over the years. This site keeps it updated.
     
  7. Thanks. I think we'll now be in limbo for a week or two between the end of a downward trend (last Tuesday) and whatever will come up next (the next rally?). In the meantime, we should see all kinds of directionally insignificant moves.
     
  8. Surdo

    Surdo

    I am on the sidelines myself, for the time being.
    I was wearing a few long for a week until today.
    'sold 'em on the way up here, a little early but paid some bills.

    I have very mixed signals on all my DeMark's.

    It's been an annoying sideways trade since we broke 113 on the way down, we shall see, all the best to you.

    el Surdo