Trading with Intermarket Analysis: A Visual Approach to Beating the Financial Markets Using Exchange-Traded Funds
Intermarket analysis, as the name implies, is the analysis of two or more related asset classes or financial markets to determine the strengths or weaknesses of the financial markets or asset classes being considered. Instead of looking at financial markets or asset classes on an individual basis, it looks at several strongly correlated markets or asset classes—most often, stocks, bonds, commodities, and currencies. Although once viewed with skepticism, intermarket analysis has now become an accepted part of technical market analysis. Trading with Intermarket Analysis will show you that it has also become an increasingly indispensable part of it.Drawing on his vast experience as both an educator and an expert trader, John Murphy explains what he calls the "new normal" in intermarket relationships that exists as we enter the second decade of the new century. Through a combination of sound economic principles and striking color graphic illustrations, he reveals what those "new normal" relationships are and how you can take advantage of them. In addition, Murphy shows how intermarket analysis plays an important role in asset allocation and sector rotation strategies, both of which are tied to the business cycle, and details how exchange-traded funds (ETFs) have greatly facilitated the application of intermarket strategies.