Correlations to Monitor, The Second Week of July, 2013

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The solar sector vs. crude oil appears to be a natural pair set up. Trina Solar vs. Light Sweet Crude

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Yingli Solar vs. Sweet Light  Sweet Crude

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Airlines vs. Light Sweet Crude also seems natural. But the chart of Alaska Air that I pulled is negative on this pair at this time. However, the upside is big if a correlation begins to form. In other words, now is a “buy low” moment for this pair: near maximum risk, but very high potential. I’ll leave it to those who sleep overnight well.

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The end of June marked a good moment for the Dr. Copper vs. Crude Oil pairs trade.

Correlations:

The Thirty-year Bond vs. The 10-year Note, .9913

The Russell vs. the Nasdaq, .9853

The Russell vs. the S and P’s, .9578

The Russell vs. Light Sweet Crude, .9407

The Russell vs. DJIA, .929

Light Sweet Crude vs. YGE, .9168

SPX vs. YGE, .9144

Light Sweet Crude vs. TSL, .8978

Gold vs. Silver, .8022

Light Sweet Crude vs. ALK, .4227

The Russell vs. Gold, -.3852

SPX vs. VIXX, -.9658

The Dollar vs. The Euro, -.9837

Thanks to Pascal Willain once again for turning my attention to solar.

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