bonds gold currencies lots of action 2nite.

Discussion in 'Metal Futures' started by Cdntrader, May 18, 2003.

  1. bonds higher, gold higher, major currencies higher against the greenback. lots of action 2nite. Should make for an interesting market 2morrow.

    Time for a reversal in these movers?
  2. JT47319


    I'm curious, I don't typically follow the bonds much, although I should, but my understanding is that the inverse bond/stock relationship has decoupled. Assuming, at least, the inverse relationship no longer exists (in the short term), might it mean that the bonds will now lead stocks. So does anyone use the bonds market as an indicator when trading stocks, indices, and futures?

    And then you have a declining dollar leading the market higher. I think I read in "Inside Greenspan's Briefcase" by Stein that a weaker dollar in a recession is actually beneficial.

    *shrug* Not a macro-economist.

    P.S. Does a weakening dollar offset a rising/flat unemployment?

  3. Alot of correlations between bonds currencies and equities seem to be in transition of late. I mean a weak dollar should mean higher rates/lower bonds right?

    bonds were going up while equities were declining up until the end of the that seems to be changing back to the bonds rally...equities rally correlation.

    Everyone was talking how foreign investment was going to leave the usa because of the weak dollar yet the equities have gone straight up in the face of a declining dollar. Now it seems perhaps the equities are factoring in higher profits from multinationals on weaker dollar.

    It's an interesting time. Geez the euro is almost @ 1.17
  4. nitro


    Yes, but Japan has been intervening on behalf of the dollar by bying bonds [trying to hold up the dollar - barely working if at all IMHO] Gold up is, IMHO, the suicide bomb...

    One thing I learned long ago is that the markets _KEY_ on certain things on different time frames. Although the [American] markets took notice of the dollar weakness [at short time frames,] IMHO, they did not start to key off it until VERY recently [now the markets are trying very hard to price them in the intermediate term.]

    Yes, EURO + ~135 now. The suicide blast this weekend in Casablanca has the markets jittery. Very difficult to say what happens tomorrow, but I am watching the dip buyers like a hawk.

  5. EUR and mini EUR tonight for a few $

    nice action for sure .... :)

  7. They've reversed nicely now. Now if I had actually put on a trade ...:/