| ||||||||||||||||||||||||||||||
Chart du Jour: Stock correlation at an all-time high By Prieur du Plessis, on August 22nd, 2011 posted in: Investment, Stocks  2 people had their say - chime in!
Laszlo Birinyi’s team at TickerSense alerts us to the fact that 50-day correlation of S&P 500 Index member companies with the Index has just risen to the highest levels since the market bottomed in 1987. “An ugly market, but attractive stocks?” asks Birinyi. Makes one think …
Source: TickerSense, August 19, 2011.
More on this topic
(What's this?)
Nearly 70% Of S&P 500 Stocks In Correction Or Bear Market Territory
(Disciplined Approach to Investing, 8/23/15)
S&P Approaches Critical Tipping Point
(Capital Essence's Investment Blo..., 9/8/15)
S&P500 Getting Ready to Break
(the Underground Investor, 8/19/15)
 2 comments to Chart du Jour: Stock correlation at an all-time highLeave a Reply |
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
 (requires Windows Media Player) 
|  
   | ||||||||||||||||||||||||||||
Copyright © 2017 Investment Postcards from Cape Town - All Rights Reserved | ||||||||||||||||||||||||||||||
Email
Byron Wien Announces “The Ten Surprises” for 2013
Prieur’s Readings (January 3, 2013)
Bob Farrell’s 10 rules for investing
Running 2012 NYC Marathon – a means to a better life for impoverished children
Prieur’s Readings (August 29, 2012): No “death of equities”
No clue as to what I’m looking at here. First, is it the S&P 500 Stock Index, referred to as “members”? Second, is it the “correlation” of the 50 Day Moving Average to the Index itself? Third, if it is, does ONE previous event predict another? I have to have 135 samples of anything before I’ll put money on it… but that’s just me. However, as a trader, I would certainly think the market could rally from this point; but that has nothing to do with the above chart.
@innertrader: “members” = S&P 500 constituent companies. Each constituent has been correlated with the the Index over rolling 50-day periods. This bunch of correlations on any given day was then aggregated to arrive at a single number for that date. The more panicky investors get, the higher the correlations, i.e. there is no where to hide for specific securities. This is the way I understand the chart from where I am spending my night in Geneva.