Do you believe your knowledge of intermarket relationships enhances your performance?

Discussion in 'Trading' started by Gabfly1, Mar 9, 2010.

Do you believe your knowledge of intermarket relationships enhances your performance?

  1. Yes

    21 vote(s)
    60.0%
  2. No

    14 vote(s)
    40.0%
  1. Ok, I'll stop. :)
     
    #21     Mar 10, 2010
  2. That's okay. Perhaps our exchange provided some clarification to other respondents who may wish to chime in at some point.
     
    #22     Mar 10, 2010
  3. GE2009

    GE2009

    I generally wait to see confirmation. It depends on what the market is doing. If gold for example had been ranging, and I see oil ranging as well, and oil breaks the range, and gold looks like it is making a push, I may buy and see if oil can make gold break. I never immediately jump into one market because the other is doing something.

    As for the second question. I would act of the stand alone set up. I do not depend on another market to make another one move. They are never 100% correlated. What I mean is that it helps to understand what drives certain moves, and if something were to happen, like Greece getting a bailout, then the Euro would tank, Dollar would surge, and gold would tank. That's happened a lot over the last few weeks. However, just because the Euro breaks to new lows, doesn't always mean gold will, or the Dollar will surge. It is never a first signal, but it gets my attention. The only time I would ever immediately jump into a trade is if, for example, the bulls have gold lets say, and the dollar is making new lows, and the euro just broke resistance or is making new highs, then I would jump into gold because there is a high probability it will move upward.

    Hope that clears things up. I never enter a trade just based on other market movements, otherwise I would be over trading.
     
    #23     Mar 10, 2010