Seeking Alpha

David Stafford's  Instablog

David Stafford
Send Message
Student of markets, enjoys following their course.
My book:
Around the World in Several Pieces
  • An Odd Couple 0 comments
    May 24, 2012 7:33 PM | about stocks: MPW, SLV

    Sometimes interesting correlations exist in markets, that one would normally suppose wouldn't. In this case, I've had a monkey-obelisk moment in regards to Silver and MPW. Now I guess one could make a case that Silver is vaguely associated with MPW through silver use as a medical product at times, due to its anti-bacterial properties. Apart from that however, MPW isn't building hospitals out of it,(Even though that would be very if cool, if kind of expensive), but the two seem very friendly with one another.

    Its kind of fascinating. In an earlier post I mentioned that I check silver every day, because its an interesting commodity to watch, kind of retail investorish at times, kind of industrial, its an interesting commodity.

    Either way, in thinking of today's market movement, and attempting to rationalize them, I noticed MPW's odd correlation with silver.

    If you overlay the two on a chart, you'll notice that for some strange reason, MPW almost sort of front-runs silver, and not only that, but if MPW makes a move, than silver is almost sure to follow. If MPW goes down by 30%, well, then give it about a month and a half, and silver is sure to follow suit. Silver is up 5-10% relative to MPW, no worries its just a matter of time until silver gets with the programs and loses 5-10%.

    Of course this could all be the result of MPW and Silver's correlation in regards to the market as a whole, however, the overlapping prices movements, at least in so far as SLV is concerned is really kind of interesting.(click to enlarge)

    Themes: Covariance Stocks: MPW, SLV
Back To David Stafford's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.