Wednesday, October 30, 2013

Stock Market Rise Tied to Collapse of Yen

Do you see any pattern here? Why is the collapse of the Japanese Yen so closely correlated to the rise in the US stock market? I wonder if Japanese investors are beginning to panic over their own government's QE-In-Perpetuity, and pull their money out to send to the US stock market instead. I suspect they'll ultimately be disappointed. Note also the sharp rise in stocks lately.

I have a rule that is really an observation of the financial markets: Parabolic UP, parabolic DOWN! It means that when (stock) markets rise as a parabolic rate, they are also prone to plunge at a similarly parabolic rate!