I got up this morning and I said to myself, "I think that there might be something interesting to be found in comparing natural gas and equity index correlations over different time periods."
So I looked into it:
When I get some more time I want to check for other periods of over 6 months that have negative correlation. I think that is a nice buying signal right there. Time will tell.
This will be the first post of a series of research posts. I've been thinking of trying out some strategies lately with fairly recent historical data. Simple stuff: buying shares and on-the-money puts and various doubling down strategies at different price levels. I think it would be interesting to see when these strategies would have been feasible to employ and in which equity sectors they would have done best.
I'll share the process and results as much as I can along the way. I'm going to try and be conservative by picking stocks or sectors that I was actually looking at last year.
I'm buying natural gas on the way down because I'm insane.
In other news, if we are getting tornadoes in Ontario, Canada for the first time in like 50 years, whats the weather got to be where the get some Real winds.
China loses 4% off one of its equity indices and we see the Americas shake the blues to rally mid-day. Regardless of whether we turn south from here this is a good sign that many think this is just a dip and we will soon be headed higher.