Intermarket
Technical Analysis: Trading Strategies for the Global Stock, Bond,
Commodity and Currency Markets by John Murphy
One
of the most striking lessons of the 1980s is that all markets are
interrelated. Stock, bond, and commodity markets are closely linked.
Overseas markets in Tokyo, London, Frankfurt, and elsewhere are also
affected and in turn have an impact on the U.S. markets. Technical
analysis is now quickly evolving to take these intermarket relationships
into consideration. This landmark book explains these relationships in a
way that you, as a trader or investor, can use and profit from-without
requiring any background in technical analysis.
Written by John Murphy, widely hailed as one of America's leading
technical analysts, Intermarket Technical Analysis takes a close-up look
at the four market sectorsstocks, bonds, commodities, and currencies, as
well as the overseas markets-and illustrates vividly how the sectors
impact each other. For instance, you'll learn how the US. dollar
typically trades in the opposite direction of the commodity markets,
particularly the gold market. You'll examine the strong inverse
relationship between the CRB (Commodity Research Bureau) Index and bond
prices. And you'll discover that stock market moves are very often the
end result of a ripple effect that flows through the other three
sectors-a phenomenon that carries important implications if you're a
program trader, or compete with one.
The book uses charts and graphs liberally to illustrate the interaction
of markets. Once the basic relationships are described, these unique
visuals show how the connections work in real life. And for those new to
technical analysis, the book contains a glossary that explains the
principles and tools of technical analysis which are employed
throughout.
Intermarket Technical Analysis is essential reading for all serious
investors and financial managers today.
Contents
Preface v
1 A New Dimension in Technical Analysis 1
2 The 1987 Crash Revisited-an Intermarket Perspective 12
3 Commodity Prices and Bonds 20
4 Bonds Versus Stocks 40
5 Commodities and the U.S. Dollar 56
6 The Dollar Versus Interest Rates and Stocks 74
7 Commodity Indexes 95
8 International Markets 122
9 Stock Market Groups 149
10 The Dow Utilities as a Leading Indicator of Stocks 173
11 Relative-Strength Analysis of Commodities 186
12 Commodities and Asset Allocation 206
13 Intermarket Analysis and the Business Cycle 225
14 The Myth of Program Trading 240
15 A New Direction 253
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