Surprising Correlations Show Speculative Forces Ruling the Markets

Last week was certainly an interesting one in the equity markets, but extremely boring in the currencies. We saw Nvidia rally $130 last week on the back of stronger than expected fourth quarter results, and in the process it has catapulted from a company worth $1 trillion nine months ago, to a company worth $2 trillion today. From a purely intellectual perspective, this is fascinating, but it is also very instructive as it reveals an awful lot about what is happening in the markets.