Exactly Torvix - currency (influenced heavily Central Banks and
Chinese Government) are one of the biggest factor on all markets
over time. There is an astounding 90% correlation between the
Chinese Yuan and Gold Bullion over the last 90 days. The
Japenese Yen is also a significant factor in markets - for example
the FANG stocks have been quite correlated with the USDJPY (carry
trade) in terms of price action. Simply put, they ramp the
USDJPY which in turn has the algo's buying the large cap
stocks. While this will change over time, that has been the
common theme of the past few years.
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Is all down to currency
Posted by torvix on 27th of Jul 2018 at 11:24 pm
Is all down to currency moves at the moment imo
Exactly Torvix - currency (influenced
Posted by steve on 28th of Jul 2018 at 12:56 pm
Exactly Torvix - currency (influenced heavily Central Banks and Chinese Government) are one of the biggest factor on all markets over time. There is an astounding 90% correlation between the Chinese Yuan and Gold Bullion over the last 90 days. The Japenese Yen is also a significant factor in markets - for example the FANG stocks have been quite correlated with the USDJPY (carry trade) in terms of price action. Simply put, they ramp the USDJPY which in turn has the algo's buying the large cap stocks. While this will change over time, that has been the common theme of the past few years.