The market is one large interconnected machineThe field has long passed the days (in the best or worst) the need to track and trade one market at a time and do not need to understand what exactly made this asset or individual shares, first of all. Today’s market is slightly differentboth traders and investors should know about Global macro -environment To survive and get ahead of competition.
For this, there is a simple concept for obtaining a sound board in the behavior of the market and the prospects found in Correlation and swing modesWith the field, referring to this, investors must consider two things when an understanding of how a change in the correlation affects the market and why: Mathematical aspect And The narrative aspectField
Since correlations begin to correspond to The cost of shares and the energy sector, as can be seen through ISHARES S&P 500 Value ETF NYSEARCA: Ive And SPDR Section SecTOR SECT Foundation NYSEARCA: XleThere are not only mathematical consequences, but also the narrative that tells investors where the economy and the rest S&P 500 It can be directed further. The advantage for retail investors in today’s market is born here.
Growth and energy together: what does it mean
This does not often happen, but Recently, the growth of shares has been tracking oil price (or vice versa), and this usually carries A very strong signalThe short version of the field is such that if Oil prices are reduced From -less optimistic economic prospects, money, of course, follows from Speculative growth in stocks With a big drawback of risk during this economic recession.
ISHARES S&P 500 Growth ETF Today
Ishara S&P 500 ETF ETF
- 52-week range
- $ 79.31
▼
$ 107.14
- Dividend yield
- 0.48%
- Assets under the control
- 52.56 billion dollars
To track these relations, investors can simply measure price data or Outline the price of oil together With Ishara S&P 500 ETF ETF NYSEARCA: IVW And keep this tool in their back pocket when you need directed displacements.
On the contrary, it can be said when the correlations are not as strong as today, but the fact is that the market screams a large warning sign for those who know where to look. In fact, many others Technical and fundamental factors Offer that this bear market is far from ending.
Another comparison of behavior investors can study this connection Correlation between oil and the cost of shares measured by the value Exchange Fund (ETF)This field plunged deep into the negative, almost forming a mirror image between oil and cost.
Economic reasoning in the same spirit, since economic uncertainty and recessions cause speculative growth and oil, oil, Money, most likely This carries a much smaller risk lack during these cycles.
How the market accepts this
Over the past month, investors saw SPDR S&P 500 ETF TRUST NYSEARCA: Spy Swing in Bear TerritoryDetermined as 20% or more reduced with recent maximumsjust to cause a reaction Institutional capital To release it from this Fank.
SPDR S&P 500 ETF Trust Today
SPDR S&P 500 ETF TRUST
- 52-week range
- $ 481.80
▼
$ 613,23
- Dividend yield
- 1.28%
- Assets under the control
- $ 571.45 billion
However, since the market began to move higher in recent weeks, the same volume simply stopped participating, as if having no confidence that the market could continue to advance above. The measurement of this decrease in volume, along with the correlation of a shift in value, growth and oil, can give investors a more clear picture of what risk exists.
There is a very strong divergence between S&P 500 index And Energy sectorAnd investors must be fully aware of this today. A SPDR Section SecTOR SECT Foundation Over the past month, I have not had a wider S&P 500 for 10% over the last month, which has a deeper value.
Given that oil and energy are ineffective from -s Economic uncertainty and potential bear scenarios in the economy of the United States, there should be no reason for S&P 500 to surpass energy To these, especially because at the moment there is no interest in growth, with the seizure of value.
In fact, investors can see this topic in a game with institutional sales of $ 517 million, which took place in Energy ETF in the last quarter (which consists only from April and May 2025). At the same time, up to 2.2 billion dollars. The United States has fallen in the ETF value, strengthening this divergence in preferences due to movement Fundamental economic narrativesField
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