Global Risk Indicator Species: Hang Seng and Aussie/$

Messing around with the charts while watching the game and came across this.

The Hang Seng and Aussie/$ are important — sometimes leading and sometimes confirming – risk indicators that should be monitored.

We have written about both.  See here and here for the Hang Seng.   Click here for the Aussie/$.

Jan12_Indicator Species

The Hang Seng is our favorite “indicator species” for global risk appetite and its delta usually leads the S&P500.  After the post crash peak in November 2010, the Hang Seng tumbled on concerns about a hard landing on the mainland and the terrible price action in the Shanghai Composite.

The Hang Seng has led the S&P500 since their June 4th 52-week lows,  up 28.8 percent compared to 16.2 percent for the S&P500.

Jan12_Correlations

  (click here if charts are not observable)

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One Response to Global Risk Indicator Species: Hang Seng and Aussie/$

  1. Pingback: Sunday links: good ideas run into the ground - Abnormal Returns | Abnormal Returns

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