Tag Archives: market correlation

These patterns you can’t miss AUDUSD, AUDJPY, SG30

Based on these patterns, we are in consolidation phase before main trend asserts itself. However I look at these 3 charts of AUDUSD, AUDJPY and SG30, bullish is not the word to describe.

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Watch AUDJPY for a continuation of this pattern and its implications

AUDJPY is a potential downside continuation pattern currently doing consolidation. At the moment, it is at support from last year’s bottom. A new 52-week low printed first quarter this year suggests further lows. Negative implications to stock indices if previous correlation is still valid.

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Another chart on the AUDJPY – SiMSCI divergence theme

Add this 3M chart of the same AUDJPY-SIMSCI divergence theme. What’s notable is that AUDJPY appears to be stepping down to a lower range where it traded between 2010 – late 2012 while SG30 remains at lofty levels.

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How’s Energy (WTI, U96, BN4) doing in this ‘correction’?

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.

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One drop all drop contagion in a high correlated global village

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.

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Is it time for SiMSCI and HSI to converge with AUDJPY?

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?

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