intermarket analysis
 global markets image


 graphic

Join my newsletter (learn more)       Intermarket analysis | intermarket analysis    






About this site
Learn about investing in financial markets. I am trying to add new articles, information about inves...
Learn more


  • General
  •    » Technical analysis
       » Fundamental analysis
       » Intermarket analysis
       » Japanese Candlesticks
       » Money Management
  • Stock market
  • Foreign exchange
  •    » Forex strategies
       » Forex Journal
  • Options
  • PAPER trading
  • Platform reviews



  • Investing blogs

    + The Visual trader
    + Commodity Trader
    + Market Rider
    + Stock Insight
    + The Kirk Report
    + Long Term Investment Strategies
    + Short-term trading
    + Wily Trader


    Forex for beginners

    + Play/test with $25


    Entrepreneur blogs

    + Guy Kawasaki
    + Business Advice Pro


    Investing Games

    + Investing Experience


    Introduction to Intermaket analysis III - global markets


    Tags -          

    US stocks market vs international markets

    When looking at trends in stock markets we need to realize that the stock market consists of thousands and thousands of different stocks and this means that even though the stock index is going in one direction, there’s always a great number of stocks that don’t move at the same time or at the same speed as the average trend. However, all stocks are somewhat influenced by the main trend. And this goes also not only when talking about the stocks in US or also including the other markets (forex, commodities, bonds), but the same is true about the global market – Japanese stock market, British stock market, etc. All these 3 markets tend to trend together – maybe not with the same speed but often at the same time or almost at the same time.

    Global Bonds
    If world bond prices indicate that the prices will be going down then there’s a good chance US bonds will follow. US stock prices are influenced by US bonds which are influenced by global bond markets where inflation and interest rates have an important role. It’s important to observe inflation around the world as the direction of inflation eventually determines the direction of interest rates. And to anticipate global inflation trends we need to study movemetns in global commodity markets.

    When comparing global money market indexes, you could compare Wolrd Short Rates, World Stock Index and Economist Commodity Index. When world money market prices are rising, it is usually bullish for global stock prices.

    Money market prices usually lead stock prices at major turning points” – John Murphy, Intermarket Technical Analysis

    Stock market stock groups
    When previously we have said that all stocks might not often follow the trend at the same time or at the same speed as the trend goes, there are different stock groups that within the group, do often move at the similar time and with the similar speed. Additionally, many stocks or stock groups are tied to specific commodities and usually rise or fall together with that commodity. For example gold mining and energy stocks, silver mining and aluminium. Then there are also stocks that are very sensitive to changes in the interest rates. This group could contain different banks which usually benefits from declining interest rates.

    Gold mining share prices often lead the price of gold.

    If inflation is increasing, you should think more about inflation stocks. If bond prices are rising relative to commodity prices you should think more about interest-sensitive stocks. Interest-sensitive stocks are closely related to bonds. If CRBindex/bond relationship is getting weaker (declining interest and inflation rates), it might be a good time to buy interest-sensitive stocks. Note that interest-sensitive stocks also tend to lead other stocks and are more connected to bond market than to stock market.


    Now what? Digg it  |  Add to My Yahoo  |  Add to Google Reader  |  Add to Del.ICIO  
    Comments (0) / Link to this topic - http://www.learning-to-invest.com/
    Introduction-to-Intermaket-analysis-III---global-markets--27.html




    investment advisory
    www.thedtscorp.com -

    Forex trading systems

    #1 Time-tested Forex trading system, with DOCUMENTED PROOF, that has the potential to turn $1,000 into $1,000,000 in just 24 months. Limited-Time Offer Price: $97

    #2 Powerfully Effective Forex Trading System That's Shocking Professional Traders Around The World......Completely Guaranteed To Generate 83-114-157 Pips A Week! Price: $97

    #3 Two Forex trading methods which have been hidden for years, known to only a small group of Wealthy Trading Elite! Grab 100's of pips weekly by spending only a few minutes a day at your computer! Price: $97

    #4 These Ruthless Trading Tricks And Tactics Instantly Transform You Into A Profit-Making Machine Scoring Wining Trades After Winning Trades. Price: $97

    #5 The AWARD WINNING "work from home" solution by someone who used to work for the Deutsche Bank as a forex advisor. Price: $198 (50% coupon available)

    latest submissions
          » Volatility is your friend

          » Tips from successful day traders, Part 3

          » Tips from successful day traders, Part 2

          » Tips from successful day traders, Part 1

          » Make money not debt

          » Make money not debt

          » No skills? Free online trading school is there to help you

          » End of month and need a loan?

          » M&T e-Money Market

          » 5 Traits of Highly Effective Financiers

          » Great forex product reviews

          » It's all about money management

          » What is going to happen next?

          » Brutally honest analysis of yesterday

          » USD at its lowest levels of 2 years

          » Testing time, Day 3

          » Testing time, Day 2 UPDATE

          » Testing time, Day 2

          » Testing time, Day 1

          » My own trading plan

          » Technical indicators - Aroon, ATR, CMO, ADX

          » Creating a trading plan

          » Results of the trading competitions and next week

          » Trading rules - something new to think about

          » Forex strategies: Short term strategy

          » The game of probabilities

          » What can you learn from poker?

          » Elliot wave - guidelines for wave framework

          » Introduction Elliot Wave Principle & Fibonacci ratios

          » What does Straddle mean?

          » Forex platform review: Easy Forex

          » How to find and confirm a trend?

          » Different look into trading and life in general

          » Introduction to Swing Trading

          » Introduction to 1-2-3 Trading Method

          » More trading rules

          » Candlesticks – the importance of Gaps

          » Sakata’s Method / method of Munehisa Honma

          » Money Management

          » Candlestick Continuation Patterns

          » Forex and intermarket analysis

          » Candlestick Reversal Patterns III

          » Forex strategies: The Sidus Method (EUR/GBP and EUR/USD)

          » Forex strategies: Big Ben Strategy (GBP/USD)

          » Foreign Exchange: Carry Trades

          » Candlestick Reversal Patterns II

          » Candlestick Reversal Patterns I

          » Introduction to Japanese Candlestick Charting

          » MACD histogram

          » The Three Moving Average system

          » Technical indicators: Williams %R indicator

          » Technical indicators: Parabolic SAR (Stop & Reverse)

          » Common sense trading rules (Michael Jenkins)

          » Geometry for predicting market behaviour (Michael Jenkins)

          » Emotional vs rational trading

          » Competition: First Day’s thoughts

          » Trading competition, 4 weeks

          » Bollinger bands

          » Relative strengh indicator - RSI

          » Introduction to Intermaket analysis III - global markets

          » Introduction to Intermaket analysis II – related markets

          » Learn to do your maths

          » Introduction to intermarket analysis

          » Introduction to technical indicators II

          » Introduction to Technical indicators I

          » Recognizing chart patterns II

          » Recognizing chart patterns I

          » More on volume & OBV

          » Introduction to charts

          » Learning from winnings AND losses

          » What are sideways movements?

          » Importance of volume

          » Introduction to Dow’s Market trends

          » Bull Market and bear market

          » Who is Charles Dow and why should you know him?

          » Stock background search

          » Introduction to stock options

          » Forex - pips, spread, margin, leverage

          » Basic introduction to Forex trading

          » What is Pattern Day Trading

          » Signs a company is going bankrupt

          » How to analyse stocks and forex?

          » Which online trading platform to choose?

          » How do I set my financial goals

          » Investing basics - think before you act

          » Learning to invest




    Buy Silver
    goldmoney.com - why buy silver from goldmoney? all customer silver is insured and audited. open a free account to buy silver.
    buy future payments
    investment advisory

    Privacy Policy | All rights reserved © Learning To Invest 2006, Email: / intermarket analysis