A Look At Current Intermarket Correlations

faithmight

Ashraf Laidi (@alaidi) shared this chart yesterday showing the intermarket correlations between the $EURUSD and $GLD and the $SPX. I like to use correlations when they can provide hints as to how a particular currency pair may move or even confirm a trading opportunity. However, your specific currency pair analysis should be the guiding light in taking any trade. That analysis should guide the trade. The correlation should not.  Correlations are made to be broken. If a correlation is not working out then don’t force it and don’t use it. But when they do work out, it is a beautiful thing.

Charts show the correlations in gold, S&P, and euro


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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