CHART OF THE DAY: The Dominating USD Correlation Matrix

CHART OF THE DAY: The Dominating USD Correlation Matrix - 02.03.15 chart

Editor's note: This is a brief excerpt from today's Morning Newsletter written by Hedgeye CEO Keith McCullough.

But you already know that since the flexible and prepared player knows this USD correlation matrix is dominating:

  1. Inverse correlation between USD and the CRB Index (19 commodities) on a 90-day duration is -0.97
  2. Inverse correlation between USD and Oil on a 90-day duration is -0.95

In other words, if you got the rate of change in the USD right, you’ve gotten both the commodities and Oil crash right. Oh, and you played the counter-TREND reversal beautifully too!