The Russell 2000, Ten Year Treasuries And Banks

Let’s take a look in greater detail at the chart shown in the post last week.  Above is the ten year Treasury, the Russell 2000 and the Nasdaq banking index. 

Every single move between the three indices is completely in sync and correlated sans a handful of days.  Even then, the indices eventually resynchronized.  A few of those days just so happen to be in the last few weeks.  So, if the correlation is going to continue, bond prices are due to rise in coming weeks or stocks are due to fall. 

I have shown these correlation charts on here quite a few times.  They are a sign of the sickness that is pervasive in financial markets.   Prices don’t move based on anything other than manipulated computer algorithms that require an endless stream of new money.  That includes commodities markets as well.  Anything the predatory, profit-driven class of pathology touches, they literally destroy.   There is no true price discovery in financial markets as noted on here many times.  Or, for that matter, in any markets.  Everything is rigged whether that is the price of meat, the price of a television or the price of a stock.     It’s all an illusion created through financial engineering and fraud.

Money, hierarchy, corporations, the state and any other institutions of control truly are the source of all manufactured (unnecessary and contrived) violence in this world.