UnsungTraderTV

Concerning Dow Jones Correlations

DJCFD:DJI   Dow Jones Industrial Average Index
Several correlations that I track are at rather concerning levels. All of these markets moving together could result in a negative feedback loop.

The DJI 20-day correlation coefficients included are: DJ China, DJ Europe, DJ Japan, junk bonds, US WTI oil , DJ US real estate, and gold . Included for experimental observations are: VIX and SPX put/call ratio .
Comment: This is still looking rather concerning. Gold and the Japanese DOW are less correlated but other relationships are mostly unchanged. Taking a guess at why, both of these are viewed as safe havens.

Comment: Still very high correlations for most assets on this chart. Gold has been trading independently recently.
Comment: Still very high while we are headed into peak earnings season.

Comments

Well, you told me to have a look, and it definitely worth the time ! Indeed I also tend to believe that this may cause a big messy range to occur in the following months because we'll have to fuck up some of these correlations ! The market doen't really like stability ^^
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when one falls - all fall... and yes - we are at the brink of a Potential Black Swan.
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@CodedFlow, well not gold if the negative correlation sticks.
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CodedFlow UnsungTraderTV
@UnsungTraderTV, they built this system :-()
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@CodedFlow, I know what you mean though.
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Tub for taking time to putting this perspective together. I’m on the swan train as well.
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