SPDR S&P 500 (SPY)

[Two-timer]

Hey, Fox. What do you make of Ty Durden's comments re. the Nikkei? Think there's any correlation? Two

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Does The Nikkei Foreshadow A 10% Drop In The S&P?Submitted by Tyler Durden on 12/02/2009 13:51 -0500

As Zero Hedge presented previously, the sharp divergence between the Nikkei and the S&P continues. The two indexes, which have correlated 0.91 since March, have diverged sharply in the past three weeks, and now stand at an over 11% divergence in performance since the year lows. Whether this is due to the "shocking" recent realization that Japan is caught in an ever increasing deflationary vortex (which the US likely will not avoid, at least not in the near term), or simply due to momo quants deciding that the Nikkei is no longer fun to chase, a convergence trade on the two broad indexes (long Nikkei, short S&P) seems like a rather painless way to pick 10%. Then again, ask Boaz Weinstein about "surething" convergence trades.