It seems to me like for a while assets were moving in a lockstep: If stocks up -> oil up, copper up, credit up, EM up, commodity currencies up, treasuries down, USD down. If stocks down then oil down, copper down, credit down, EM down, commodity currencies down, treasuries up, USD up. You could look at the change in SPX and pretty much read what's going on everywhere else.
Thee past couple days I have been seeing a breakdown in this correlation structure. First of all, stock market seems to be going nowhere on what appears to be pretty good news - certainly something that would have powered the index higher 2%+ back in July. Flattish SPX, down oil (though that's likely because of the DOE number), tsys slightly up, USD up huge.
Are things not as simple as risk on/off anymore? Of course two days do not make for any discernible pattern - and with the stock market more or less flat it's hard to tell if there is even anything really unusual there. But I am wondering if this is a sign of a shift in dynamics.
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