Intermarket Analysis

Discussion in 'Technical Analysis' started by Murray Ruggiero, Sep 13, 2005.

  1. Intermarket relationships change constantly. up until a few months ago, nearly every tick in gold/silver was tied to commodity/euro moves.

    Now its totally decoupled.

    Same thing with food futures and oil. They used to move in near lockstep, now they are often decoupled.

    I use about 36 different sectors/commodities/currencies in my intermarket analysis every day.

    but, im always on the alert for when something decouples, and needs to be treated differently. Food futures and metals will return to normal correlation soon. But , until then , they're in the "penalty box" with the swiss franc. You have to eye their moves with suspicion.

    We might see a world, soon, where the euro goes inverse to Oil. Or, oil goes inverse to copper etc.


    You need to constantly be on the alert for changing relationships between markets. The meaning of moves is always changing. You cant just stick with the same correlations for decades. Those correlations were designed when emerging market residents were literally still living in huts. Now theyre buying buicks.
     
    #91     Jun 30, 2010