Energy stocks had prospects to become star performers in 2018 based on their January performance as well as performance of WTI. With the US stock correction however a 5-day heatmap reveals Energy (XLE) to be the worst performing sector. Also WTI technicals, performance of SGX-listed Keppel, Sembcorp.
It really shouldn’t matter to a speculator what caused this round of correction/crash. It could be a spike in the VIX complex, rising bond yields or runaway algorithm-trading. If there is a crash somewhere, it would be followed by margin calls which will trigger sell orders in other assets to raise cash.
AUDJPY, SiMSCI and HSI demonstrated very high levels of positive correlation in the past but this correlation ‘fell apart’ since 2017. Is this correlation still valid? If valid, what does AUDJPY’s recent trend portend for traders in these two Asian indices? Is it time to converge? Indices to fall some more?
At a high time frame from 2005 – 2017, Singapore stocks Sembcorp, Sembmarine and Keppel Corp appears to have strong positive correlation to WTI in this overlay. Over a shorter duration, that correlation is less convincing.
‘Can property prices be actually correlated to the stock market?’ Jo’An Tan, Associate Director, Redbrick Mortgage Advisory contributes her observations to this question.
WTI and DXY used to show a clear negative correlation. This disappeared in the middle of 2016. Is this a temporary divergence or a permanent change? If the present appearance is temporary only, one of them is going to show it’s true colour soon.
It appears there is a big divergence between the usually highly correlated HSI, SiMSCI and AUDJPY. Who is smarter? The stock market or the forex market?