Question was this : Even though SPY and QQQ are currently in red trading mode meaning no buying stocks for me , can I enter new trades on commodities funds ??
My long term test from 2008 to now determined this
2008 to current date SPY vs DBC Regression coefficient beta == -7.88 Correlation == 0.28 meaning long term negative/low correlation
2020 Jan 1st to 2021 Dec 21st Regression coefficient == 17.85 Correlation 0.9 meaning for that period the two instruments were fairly correlated
2021 Dec 21st to April 12 2022 Regression coefficient beta == -4.15 Correlation 0.32 meaning from Dec 21st 2021 to now , for the time being SPY and DBC are back to the long term trend of low correlation
Result : I think it's reasonable to continue to long strong commodities when I see reasonable entries on them as long as this low correlation between SPY and DBC remains . Even though stocks are in " Red trading mode " as a result of being under their 21 ema's for time being ... I am going to possibly experiment with additional longs in commodities .