Other Inter-Market Relationships Commodity Prices, The Dollar, and Emerging Market Equity Even in this new age of e-commerce and technological revolution, commodity prices still matter. Many regions of the world are extremely sensitive to the pricing of basic raw material prices. The U.S. dollar is also a major factor. As the dollar rises, other nations’ […]

Crude Oil and Bonds One of the more fascinating inter-market relationships exists between the energy complex and interest rates. Since this relationship exists on two different levels, it often appears quite confusing. On a longer-term basis, rising energy prices put upward pressure on interest rates and vice versa. The comparative chart of the U.S. 10-year […]

Stocks and Bonds Equity Market Tops: The Bond/Stock 6-Month Lag Each equity market cycle is both broadly similar and exceptionally unique. There are repeating patterns, however, which may be relied upon. In cycle after cycle, a ‘bubble’ top is created when the equity markets rise after the bond market turns down. The longer this divergence […]

Bonds and Commodities Rising commodity prices tend to push bond prices lower, while falling commodity prices lead to higher bond prices. In other words, there is a distinct inverse relationship between bonds and commodities–most of the time. On the other hand, there is also a lagged relationship that is rarely noticed, but is equally powerful. […]

Inter-Market Analysis Introduction Inter-market analysis deals with the relationships among equity, fixed income, foreign exchange, and commodity markets. In my analysis, I try and determine what the movement or changes in trend in one market may mean to the others. I search for confirmation and/or divergences in market trends and cycles. Is a move in […]

Level II Trading: Tactics and Techniques As an equities trader, you can make money on intermediate-term and swing trades by using an online broker. But, if you’re an active trader, and you trade more than two or three times a day, or you’re a scalper, and jump in and out of stock positions in seconds […]

My Strategic Trading Rules I would not set out on a hike in unmarked and unfamiliar territory without a compass and a map because without those tools I might become lost. Neither do I trade without strategic trading rules–because without them I AM lost. The rules I will outline below are strategic because they answer […]

The Taxonomy of Bear Markets Taxonomy is the science of filing things. Our commonly accepted zoological taxonomy, for instance, sets up a hierarchy of files under “family”, “genus”, “species”, and so on, and then fits every animal into one file or another. Some critters are easy to file, but others are not. The duck-billed platypus […]

The Turkey Shoot Imagine that you are on a turkey shoot. You hear a wild turkey calling in the woods, then spot his tail moving behind a fallen log. You bring down your rifle and focus on an area along the top of the log. You are ready to fire the moment you see the […]

Springs and Upthrusts Picking tops and bottoms can be risky, but understanding concepts like Wyckoff’s springs and upthrusts allow you to identify low-risk, high-reward trade setups based on false breakouts. Before the rudiments of technical analysis were spreading like wildfire via the Internet, bookstores and television, the general public or “the crowd,” would join a […]