Long short market dynamics trading strategies for todays markets

... result, the concept of technical analysis is now evolving to take these intermarket relationships into consideration Intermarket technical analysis refers to the application of technical analysis ... only the market or markets we're trading Intermarket analysis represents an evolutionary step in technical analysis Intermarket work builds on existing technica...

Ngày tải lên: 20/06/2014, 20:20

... by the trend of the commodity markets The inflationary impact of the commodity markets is largely determined by the trend of the U.S dollar Therefore, we begin our intermarket analysis with the ... the dollar preceded the 1986 bottom in the CRB Index by 17 months The 1988 bottom in the dollar preceded the final peak in the CRB Index by six months How, then, doe...

Ngày tải lên: 20/06/2014, 20:20

... 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 DOLLAR VERSUS THE STOCK MARKET It ... rising for several months, pulling the dollar higher Over the summer both the dollar and stocks began to weaken THE DOLLAR VERSUS THE STOCK MARKET 87 FIGURE 6.11 T...

Ngày tải lên: 20/06/2014, 20:20

... Index, and the Consumer Price Index THE CRB INDEX VERSUS THE PPI AND THE CPI The moral seems to be this: For longer-range intermarket analysis, the CRB Index is superior to either the metals ... or oil However, there are short periods when either of these two markets, or both, will play a dominant role in the intermarket analysis Therefore, it's necessary to monitor...

Ngày tải lên: 20/06/2014, 20:20

... 1987 TOP IN THE S&Ls MIRRORED A SIMILAR BOTTOM IN THE CRB INDEX THE MID-1988 PEAK IN THE CRB HELPED LAUNCH THE S&L RALLY THE PEAK IN THE S&Ls IN THE AUTUMN OF 1989 COINCIDED WITH THE BREAKING ... 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 shou...

Ngày tải lên: 20/06/2014, 20:20

... rallies in the CRB Index The final top in the Dow Utilities and the final peak in the bonds in early 1987 coincided with a trough in the CRB Index The breakdown in the two financial markets in the spring ... relative-strength analysis as a technical trading tool First, another confirming technical indicator is created on the price chart If technical traders see a...

Ngày tải lên: 20/06/2014, 20:20

... many times before, the inverse relationship of commodity prices to bond prices is the most consistent and the most important link in intermarket analysis The use of ratio analysis is another useful ... gold as their commodity proxy, I'll show where the yellow metal fits into the picture Because the bond market plays a key role in the business cycle and the the interma...

Ngày tải lên: 20/06/2014, 20:20

... type of analysis Intermarket analysis simply adds another step to the process and provides a more useful framework for understanding analysis of the individual sectors For the past century, technical ... should be taken into consideration Technical analysis is the preferred vehicle for intermarket work Intermarket analysis adds a new dimension to technical...

Ngày tải lên: 20/06/2014, 20:20

... dollar The entire decade saw the U.S currency on the defensive THE DOLLAR VERSUS THE CRB INDEX 61 FIGURE 5.5 THE U.S DOLLAR VERSUS THE CRB INDEX DURING 1988 AND 1989 THE DOLLAR BOTTOM AT THE START ... bottom in the CRB Index The relationship between the dollar and the gold market is very important in forecasting the trend of the general commodity price leve...

Ngày tải lên: 20/06/2014, 23:20

... direction and sometimes in the same direction The trick is in understanding the lead and lag times that usually occur and also the sequence of events that affect the two markets Figure 6.11 shows the ... TOGETHER DURING AUGUST AND OCTOBER, THEY BOTTOMED TOGETHER DURING THE FOURTH QUARTER OF THAT YEAR Stocks versus the Dollar 1987 THE DOLLAR VERSUS THE STOCK MARKET...

Ngày tải lên: 20/06/2014, 23:20

... coincides with the middle 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 ... such as gold and oil The study of gold and oil leads us to the next stop on the intermarket journey, and that is the study of industry groups Two global...

Ngày tải lên: 20/06/2014, 23:20

... coincides with the middle 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 ... such as gold and oil The study of gold and oil leads us to the next stop on the intermarket journey, and that is the study of industry groups Two global...

Ngày tải lên: 20/06/2014, 23:20

... later the broader stock market followed bonds and the utilities lower The key to understanding the relationship between the Dow Utilities and the Dow Industrials lies in the recognition of the ... groups (energy and precious metals) and the weakest group (the grains) Each Figure shows the actual commodity group index in the upper chart and the relative ratio...

Ngày tải lên: 20/06/2014, 23:20

... dollar The entire decade saw the U.S currency on the defensive THE DOLLAR VERSUS THE CRB INDEX 61 FIGURE 5.5 THE U.S DOLLAR VERSUS THE CRB INDEX DURING 1988 AND 1989 THE DOLLAR BOTTOM AT THE START ... bottom in the CRB Index The relationship between the dollar and the gold market is very important in forecasting the trend of the general commodity price leve...

Ngày tải lên: 21/06/2014, 07:20

... brings us to the final point in this discussion: The relationship between the CRB Index, the Producer Price Index, and the Consumer Price Index THE CRB INDEX VERSUS THE PPI AND THE CPI The moral ... bearish implications for global equities GLOBAL INTEREST RATES Figure 8.18 compares the bond prices for the United States, Japan, and Britain for the last t...

Ngày tải lên: 21/06/2014, 07:20