 |
Perfect Inverse Correlation Between the Dollar and the Dow
Washington’s Blog
Wednesday, Nov 11th, 2009
Karl Denninger – who is always worth reading – shares 2 stunning charts which show the inverse correlation between the dollar and the Dow:
That is an overlaid chart (as close as I can easily get them to register) on the dollar and The S&P 500 from the March lows to today.
Notice the near-perfect inverse correlation. The Dollar goes up, the market goes down. The Dollar goes down, the market goes up.
Now today, literally minute-by-minute:
Same correlation – near-perfect.
Prison
Planet.tv Members Can Watch
Fall Of The Republic
Right Now Online -
Don't Miss Out! Get
Your Subscription Today!
CANCER CONSPIRACY? Are
"they" suppressing the cure? Will YOU
be the next victim? Learn
the Secret Truth! - READ FULL STORY
-
- Social bookmarks
- Email this article
-
- Print this page
21 Responses to “Perfect Inverse Correlation Between the Dollar and the Dow”
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |||||||
| By N2H | |||||||||||||||||||||||||||||||||||||||||
November 11th, 2009 at 5:07 am
new short film about lieing shawn hannity and laughting boy john edwards, gunrights, verichip and the coming chip thats here now, chemtrail and the brainwashing of the corp media- http://www.youtube.com/watch?v=CmvCFd866R8
Reptoids Reply:
November 11th, 2009 at 5:31 am
The Reptoids are coming soon be ready for mass war. We attacked the moon now its their turn.
daggaz Reply:
November 11th, 2009 at 7:43 am
?? Whats the point. The DOW (and the S&P) is priced in dollars. If the value of the dollar drops, the DOW will rise (its suddenly worth more dollars), and vice versa. This is nothing secret, nor is it even illuminating. Its just an obvious fact which is the result of an obvious relationship. Not news.
Steve Reply:
November 11th, 2009 at 8:58 am
Hi Daggaz,
Your theory is not all that accurate. A dollar is a dollar is a dollar. The dollar only weakens or strengthens against foreign currencies and not against itself, no matter how many are being printed. If the stocks were in a foreign currency then you could argue that the value of the stocks in dollar terms would be higher.
The DOW is measured by trades and not in dollar terms anyway. However, there is absolutely no economic reason why the DOW should go as high as it has, there has been some sort of market manipulation within the financial sector. But I’m sure it will be short lived.
pitofdoom Reply:
November 11th, 2009 at 12:05 pm
Trillionaire’s pumping in a few hundred billion does that every time.
With the objective of utter demoralization, thereby ushering in the NWO.
The stock market is all about confidence or the lack thereof!!
Hangtime55 Reply:
November 11th, 2009 at 2:04 pm
But there is a reason why the Dow has gone as high as it has , it’s to vaporize any ‘dollars ‘ that the Dow doesn’t have .
I was buying ( sorry about the punn ) you Dow explination until you said :
” . . . However, there is absolutely no economic reason why the DOW should go as high as it has . . . ”
You just debunked your own statement .
Tod G. Reply:
November 11th, 2009 at 10:42 pm
That’s the most ridiculous fallacy I’ve heard – of course the dollar weakens or strengthens vs itself, when comparing its intrinsic value between two points in time. Ever seen a graph of $USD? Measuring the value of a currency against another is like you being in a car on one side of a highway driving 60 mph and the other guy in another car on the other side doing 70 mph, and you saying “Look at me vs him! I am driving 130 mph because he is moving away from me at that speed”. Ridiculous.
The dollar is worth 3 or 4 cents vs. what it was worth in 1913 when the Fed took over. That’s measured against itself.
And the Dow is computed using the dollar share values of its components. A stupid measure indeed vs. market cap, but you are wrong again.
Steve Reply:
November 12th, 2009 at 2:37 am
Hi Tod,
The dollar doesn’t weaken or strengthen against itself. In 1913 100 cents made up a dollar, today it’s the same thing 100 cents per dollar. It’s the value of the dollar against something (a third entity) that changes.
The chart which measures the value of the dollar is based on the value of the dollar against a basket of currencies and not against itself. A dollar is always a dollar.
As for the DOW check the volume of the DOW (the number to the right of the main index, check the buys and then check the sells, find the difference. If there are more buys the DOW goes up, if there are more sells the big board reports a downturn in accorance to the difference between the buys and sells.
Check it out.
It costs nothing.
November 11th, 2009 at 6:01 am
This tells me that the NY stock market isn’t really going up and down at all. It only appears to be going up or down. When the stock value goes up, in dollar terms, the value of the dollar goes down, the net result being zero.
November 11th, 2009 at 7:35 am
Not to be too nitpicky, but the Dow and the SP 500 are two different (altho overlapping) groups; might want to think of changing the headline, or using the Dow data in the chart.
November 11th, 2009 at 7:41 am
The lesson here shows that the nations wealth is going into a black hole and wallstreet is the blackhole!
pitofdoom Reply:
November 11th, 2009 at 12:07 pm
You rang?
November 11th, 2009 at 8:19 am
The Dow can only move opposite the dollar so long. As peoples pay checks become worthless they wont be consuming anything but food, this will drag the Dow back down to earth. The markets will be getting this reality check soon. When they see the Christmas sales numbers which will be shockingly weak, those who are speculating that a recovery is here will start speculating they got Punked.
pitofdoom Reply:
November 11th, 2009 at 12:10 pm
I suspect “We” will get a whole new crew of forked tongue talking heads,
for the ones we’ve got will have been fully spent.
They’ll need new garments of shinny colors to dazzle their bling before your eyes.
November 11th, 2009 at 9:57 am
HERE: Stream and Download ALL the best interviews and rants from the Alex Jones Show Archives:
http://alex-jones-archives.politicsfiles.info/
TODAY:
- Jesse Ventura:Jesse’s New Show ‘Conspiracy Theory’ on TruTv
- Judge Andrew Napolitano:The Government Doesn’t Care About YOU!!
- Author Jon Ronson {Via-Webcam}:The Men Who Stare at Goats
- {Sunday Edition}:Pelosi “Buy a $15,000 Policy or Go to Jail”
Backup your favorite episodes, don’t miss any!
November 11th, 2009 at 10:45 am
I see 4 lines none of which is labeled. What are they? And how about adding titles on the axes and maybe some numbers. These are more like ink blots than graphs.
November 11th, 2009 at 11:23 am
It means that the costs of imports are high, the cost of exports down. It also means that multinationals are doing well abroad and the value of these profits means a lot dollars when expressed in US currency.
November 11th, 2009 at 12:01 pm
In any business labor is your biggest expense. When you lay off 25 to 50 percent
of your workforce your profits – and your stock price – will go up. And all this
will occur WITHOUT making ONE additional sale of your product or service.
Presto..!! A “jobless recovery”!
pitofdoom Reply:
November 11th, 2009 at 5:29 pm
And you get to replace the little worthless plebs cheep after a good lashing!!
November 11th, 2009 at 5:22 pm
The less the dollar is worth,the more of them it takes to do the day’s business,so when the dow is up,the dollar is down.
DUH!.
November 11th, 2009 at 5:24 pm
It’s just a game,and the joke is on US.