10 Year Note vs S&P 500 Correlation — Elasticity Trade

I usually focus on the funding currencies or commodities when looking for correlation and leading indicators for equities.  For the time being everyone needs to be glued to a chart of 10 Year Notes and 30 Year Bond futures.

I’ve taken a few rolls in the the SPY – TLT elasticity trade lately.  Working very well, although I took a loss on my position today.  Be careful, this trade is more highly correlated to the SPY than the TLT.

15 min chart of S&P 500 futures in BLACK and 10 Y Note futures in RED.

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