Intermarket Whac-A-Mole

Every trader that looks at more than one market throughout the day will recognize that there is a certain symmetrical relationship between certain markets at certain times. The confounding thing about these intermarket relationships is that they are fleeting. Sometimes the Euro dances with the S&P 500, and sometimes Gold butts in. Standing in line to get their chance are Crude, US Bonds or the Yen. Statisticians dub this phenomenon correlation. And they've even gone to the trouble of representing it as a mathematical formula. Lucky for us that we don't need to derive it every time we wish to see if there is something there or if it's just our imagination.

We Are All Grecians

Observing the ruckus in Greece about what they plan to do with a maxed out credit card, I cannot help but feel a vicarious empathy. The state unions and pensioners are protesting planned austerity measures, but wouldn't you if your government-sponsored welfare was being threatened? Think back to when you we just a young child and your parents threatened you with taking away television privileges or some such entitlement that was important to you. It's not fair to offer something and then take it away. It's demeaning, insulting and dis-empowering. The Greek Prime Minister, Mr. Papandreou, has been appointed that country's liaison with Reality. It's a job that comes with no small sense of peril and loathing. Imagine if you couldn't even get to work because your employees were protesting your office and you needed to find other suitable office space to plot your solutions.