thanks for your advice king . i just wanted to ask because i've changed the scoring in my number line . i wanted to see if i haven't completely gone off tracks and taken the "value" out of the number lines. king i'm gonna start also looking at commodities like you suggested , i think Robert also quoted maverick looking at stocks making 52 weeks high . i've got a lot of work to be cracking on :eek: Robert if you have any more words of wisdom from maverick keep them coming its much appreciated,
there was a long discussion about the idea of risk on/risk off. You should understand that low interest rates create an environment where in order to show a return a fund manager has to take risk to get a yield for their client, this is risk on. Last years return in the SP500 was risk on helped by QE. Your product GBPJPY, is it risk on or risk off and why? Its one of the most volatile pairs, so what are the factors that make it so. daily bars es and pound/yen from 2/3 think they are correlated?
Ok king so your suggesting that the continued aggressive QE with addition low interest rate in the Yen is making the yen very volatile (risk on) wheres the sp500 is less volatile due to measured cuts in Qe by the fed in-comparison and in relation to the gbpjpy to sp500 the correlation not to great ( excluding the chart you have shown look very correlated) let me know if my thought process is correct or wrong
no I am saying the sp500 and poundyen or eur/jpy are very correlated, what I said in my first post was that the world stock indices and really all pairs are correlated, the USDJPY is a fairly direct expression of that, the pair you were talking about is volatile on its own. Maybe Mav can chime in about this.
this is pretty dated but was one of the first books on intermarket analysis or you can see if Bridgewater is hiring. http://cdn.preterhuman.net/texts/un...t Technical Analysis - Trading Strategies.pdf
No, I think he is saying the opposite with regard to the correlation of the GBP/JPY and S&P 500 (i.e. they are very correlated). The reference to risk on vs risk off is a way of characterizing different trades as the expression of the the same theme. In this case, if the environment is risk on, you could buy the S&P 500 or be long the GBP/JPY pair (he added the chart to show the similar price action of the two side by side). In a risk on environment, the JPY will tend toward weakening as traders borrow in JPY due to low rates (funding currency) and invest in risky assets around the world. While I do not have an opinion on the GBP, given the GBP/JPY is effectively short JPY, it is not surprising to me that the pair tends to correlate positively with a risk on strategy.