... relationships into consideration. Intermarket
technical analysis refers to the application of technical analysis to these intermarket
linkages.
The idea behind intermarket analysis seems so obvious that ... only
the market or markets we're trading.
Intermarket analysis represents an evolutionary step in technical analysis.
Intermarket work builds on existi...
... by the trend of the U.S. dollar. Therefore,
we begin our intermarket analysis with the dollar. The path to take is from the dollar
to the commodity markets, then from the commodity markets to the ... of the chart
shows the CRB Index during the same period of time. The arrows on the chart show
how the peaks in the bond market correspond with troughs in the C...
... spring of
1989, which was the beginning of the end for the bull run in the dollar.
THE DOLLAR VERSUS THE STOCK MARKET
It stands to reason since both the dollar and the stock market are influenced ... in the summer of 1986, whereas the Foodstuffs didn't bottom out until
the first quarter of 1987. The Foodstuffs, on the other hand, peaked in mid-1988 and
dropped...
... Since
each of the four financial sectors is tied to the other three, a complete technical
analysis of any one sector should include analysis of the other three. The goal is
to consider the broader ... program
trading caused the U.S. selloff, how do we explain the collapse in the other world
THE GLOBAL COLLAPSE OF 1987 125
FIGURE 8.3
AT THE 1987 PEAK, THE BRITIS...
... trough (the head) in the CRB Index. The
third trough (the "right shoulder") in the CRB Index in the spring of 1987 coincides
with the middle peak (the head) in the S&Ls. The "right ... interest-sensitive sector before it hit the general market.
The bond market therefore became a leading indicator for the interest-sensitive stocks
which, in turn, bec...
... juice 144 . 34
Orange juice 105.62 Crude oil 112. 24
Platinum 105.59* Gasoline 111.39
Crude oil 105.36 Hogs 109 .41
Sugar 1 04. 52* Gold 109.20
Coffee 1 04. 40* Platinum 105 .40
Gold 103.27 Lumber 1 04. 40
Cattle ... such things as the trend of the
dollar and commodity prices. For these reasons, the Dow Utilities are a part of the
intermarket picture.
DOW UTILITIES VERSUS THE...
... it to their clients to dig for the real reasons why the stock market
moves up and down and to stop going for the quick and easy answers (see Figures
14. 6 through 14. 8).
232 INTERMARKET ANALYSIS ... arbitrage
didn't exist in these other markets. How then do we explain their collapse? If index
arbitrage caused the collapse in New York, what caused the collapse in the...
... by the trend of the U.S. dollar. Therefore,
we begin our intermarket analysis with the dollar. The path to take is from the dollar
to the commodity markets, then from the commodity markets to the ... to the stock market during the
1980s. ;
Intermarket analysis usually begins with the dollar and works its way through
the other three sectors. In reality there is...
... the dollar and Treasury bill
futures. Figure 6.10 shows the sharp rally in T-bill prices that began in the spring of
1989, which was the beginning of the end for the bull run in the dollar.
THE ... detail. For most of that year, the CRB Index and the JOC Index trended in
opposite directions. During the first half of 1989, the JOC Index strengthened while
the CRB...