If we look at the figure we are seeing some high correlation between the Forex Gold and Diamond versus the Futures S&P500 and Nasdaq.
Prediction: this month Gold, Diamonds, S&P500 are going down
Prediction: this year Gold, Diamonds, S&P500 and NASDAQ are going up
How is it possible that there is some correlation between them? (my opinion)
You mostly find gold and diamnonds in the same country, mostly concentrate in Africa, South-America.
The S&P500 is correlated to Diamond and Gold companys because the S&P500 is a comparing of company's that are the most important in the US. If stocks of dollars and euro's are fall we can predict that the stocks of forex in Gold are rising, and because we know also that Gold is correlated to Diamonds we can assume that Diamons are going to be more value in the market.
Now we have one thing to understand: why the NASDAQ is correlated between these markets?
The answer at this could be something like: ''the NASDAQ is correlated because, we know that The S&P500 is a combination and comparing between the most important company's in the US. The US has some of the most powerfull and valuefull Electronic Company's. So When the S&P500 is rising (or falling) there is always some correlation in the market between them.
information: Bloomberg terminal, Wiki, is correlation one of the most important things in trading?
Prediction: this month Gold, Diamonds, S&P500 are going down
Prediction: this year Gold, Diamonds, S&P500 and NASDAQ are going up
How is it possible that there is some correlation between them? (my opinion)
You mostly find gold and diamnonds in the same country, mostly concentrate in Africa, South-America.
The S&P500 is correlated to Diamond and Gold companys because the S&P500 is a comparing of company's that are the most important in the US. If stocks of dollars and euro's are fall we can predict that the stocks of forex in Gold are rising, and because we know also that Gold is correlated to Diamonds we can assume that Diamons are going to be more value in the market.
Now we have one thing to understand: why the NASDAQ is correlated between these markets?
The answer at this could be something like: ''the NASDAQ is correlated because, we know that The S&P500 is a combination and comparing between the most important company's in the US. The US has some of the most powerfull and valuefull Electronic Company's. So When the S&P500 is rising (or falling) there is always some correlation in the market between them.
information: Bloomberg terminal, Wiki, is correlation one of the most important things in trading?
