Why bother with a daily trading plan? Because trading well is a rational process, and planning is the act of developing a rationale. Without a rationale for one’s trading, several things could happen, all bad. First...

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...

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...

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...

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...

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...

The chart below shows the Spread for three well-diversified but different stock lists over the same two-year time period. Compare the three Spreads. Each of these distinct universes of stocks produces a Spread with unique...

In the last lesson, we learned to compute the periodic relative strength of stocks in a target universe. In this lesson, we will outline the remaining steps required to compute the Spread. A diverse universe of stocks is sorted...

‘In some seasons, trend following is good; in others, reversing is good. The problem is how to differentiate the two seasons in advance.’ – Victor Niederhoffer, The Education of a Speculator The Spread is the...