Trading With Intermarket Analysis - CMT Association · INTERMARKET CHNICAL ANALYSIS TRADING FOR ThEGLOBAL STOCK, BOND COMMODITY, AND CURRENCY MARKETS . Title: The Role of Currencies
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Trading With Intermarket Analysis John Murphy Stockcharts.com
New Normal Relationships Dollar and CRB ↨ Opposite
Stocks and CRB ↑↑Together
Falling Bond Yields Have Hurt Stocks – Until Recently
Commodities and U.S. Dollar Trend in Opposite Directions
Stocks and Commodities Are Positively Correlated
Fed Impact on Bond/Stock Link
Flattening Yield Curve Boosts Homebuilding Stocks
Falling Bond Yield Drives Money to Dividend Paying Stocks
Corporate/Treasury Bond Ratio Rises and Falls With Stocks
Sept. Drop in High Yield/Treasury Ratio Warned of Stock Correction
Global Linkages
• Global stocks highly correlated
• Rising dollar favors U.S. stocks
• Emerging markets are linked to commodity prices
Global Markets Are Highly Correlated – But Dollar Impacts Leadership
Commodities and Emerging Markets Are Closely Linked
Chinese iShares and Coal Stocks Are Rising Together
Timber ETF Nears Bullish Breakout on Rising Lumber Price
WHAT INTERMARKET ANALYSIS DOES
Combines All Global Markets into a Unified and Coherent Whole Bridges Gap Between Fundamental, Economic, and Technical Analysis Adds a New Dimension to Traditional Technical Analysis