SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Trading futures based on intermarket trends -- Ignore unavailable to you. Want to Upgrade?


To: lee0 who wrote (43)2/23/2002 5:01:49 PM
From: fut_trade  Respond to of 73
 
"i was thinking about intermarket relationships and using TA to spot trades. mainly the SP US TY ex. i think a good starting point would be to ask the question do these markets really exert force on each other or is it just a coincidence."

Here's a web page and a book that discusses analysis of intermarket trends.

profittaker.com

He mentions the correlation between bonds and stocks.

"if they do exert force on each other why?"

Murphy probably explains it. I'll see if I can take a look at his book at the library.

"and what would be the best indicator to exploit that reason to make a trade. hmmm"

Backtesting should help here. So far, the only relation I've found that's worth pursuing is US vs. SP. The other markets just don't seem correlated enough to profit from.



To: lee0 who wrote (43)2/24/2002 5:35:00 PM
From: fut_trade  Read Replies (1) | Respond to of 73
 
I glanced at Murphy's book. He says that interest rates link the bond and stock markets. He says that when bonds are weak, stocks tend to drop. When bond are strong, stocks may go up, but earnings worries (like now for instance) can make stocks go the other way. But if the stock market rallies strong - usually the bond market is strong too leadning the way.

He doesn't really discuss short term trends, but mainly longer term trends lasting weeks to months.