10 Year Note vs S&P 500 Correlation — Elasticity Trade
- Posted by DynamicHedge
- on September 15th, 2010
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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DynamicHedge is an equities, futures and derivatives trader based on the West Coast. He runs a long/short opportunistic relative-value strategy within a proprietary trading group. More
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