Intermarket Technical Analysis: Trading Strategies for the Global Stock, Bond, Commodity, and Currency Markets
This book is the result of my continuing research into the world of intermarket analysis. I hope the charts that are included will clearly demonstrate the interrela-tionships that exist among the various market sectors, and why it’s so important to be aware of those relationships. I believe the greatest contribution made by intermarket analysis is that it improves the technical analyst’s peripheral trading vision. Trying to trade the markets without intermarket awareness is like trying to drive a car without looking out the side and rear windows—in other words, it’s very dangerous.
The application of intermarket analysis extends into all markets everywhere on the globe. By turning the focus of the technical analyst outward instead of inward, intermarket analysis provides a more rational understanding of technical forces at work in the marketplace. It provides a more unified view of global market behavior. Intermarket analysis uses activity in surrounding markets in much the same way that most of us have employed traditional technical indicators, that is, for directional clues. Intermarket analysis doesn’t replace other technical work, but simply adds another dimension to it. It also has some bearing on interest rate direction, inflation, Federal Reserve policy, economic analysis, and the business cycle.
The work presented in this book is a beginning rather than an end. There’s still a lot that remains to be done before we can fully understand how markets relate to one another. The intermarket principles described herein, while evident in most situations, are meant to be used as guidelines in market analysis, not as rigid or mechanical rules. Although the scope of intermarket analysis is broad, forcing us to stretch our imaginations and expand our vision, the potential benefit is well worth the extra effort. I’m excited about the prospects for intermarket analysis, and I hope you’ll agree after reading the following pages.
Contents:
- A New Dimension in Technical Analysis
- The 1987 Crash Revisited—an Intermarket Perspective
- Commodity Prices and Bonds
- Bonds Versus Stocks
- Commodities and the U.S. Dollar
- The Dollar Versus Interest Rates and Stocks
- Commodity Indexes
- International Markets
- Stock Market Groups
- The Dow Utilities as a Leading Indicator of Stocks
- Relative-Strength Analysis of Commodities
- Commodities and Asset Allocation
- Intermarket Analysis and the Business Cycle
- The Myth of Program Trading
- A New Direction
