Intermarket Analysis:
The analysis of more than one related asset class or financial market to determine the strength or weakness of the financial markets or asset classes being considered. Instead of looking at financial markets or asset classes on an individual basis, this type of analysis looks at several strongly correlated markets or asset classes such as stocks, bonds and commodities.
I thought it might be of interest to some of you to get an idea of which symbols /markets / indicators / areas I monitor – in coming up with my overall market analysis. Trust me, if you are only watching one asset class or concentrating on a particular sector or a single market, you might as well put a blindfold on, tie an arm and a leg behind you – and head down to the beach for a swim – you are sunk.
Currencies:
I follow the following pairs religiously and could likely quote you the given price and recent price action summary without looking at the screen.
- USD/JPY, USD/CHF, USD/CAD
- AUD/USD, AUD/EUR, AUD/CHF,AUD/JPY
- NZD/USD, NZD/EUR,NZD/JPY
- EUR/USD, EUR/JPY
- GBP/USD,GBP/JPY
- CHF/JPY
- CAD/JPY
These pairs are constantly monitored on every single time frame (from the monthly all the way down to the minute to minute action) – and a trade will be initiated in any one (or all pairs) at a moments notice. These pairs are viewed on the Metatrader 4 Platform that is available 100% free from many brokers online.
Futures:
These symbols may look a touch cryptic to some as they are not as commonly seen / used. Please look them up – and yes..use them.
- /GC – (gold futures)
- /SI – (silver futures)
- /CL – (light sweet crude futures)
- /ES – (SP 500 futures)
- /YM – (Dow Jones Futures)
- /NKD (Nikkei Stock Exchange Futures)
- /DX (US Dollar Futures) – I beat alot of people up about watching this specifically as I trade/observe the USD against the majority of currencies on an individual basis – but yes…it’s on my screen.
I use the “Think or Swim” trading platform for all of my futures, stocks and options charting and would suggest you do the same as it too is 100% free and provides some incredible tools.
Other Symbols:
This is getting a little long so I will break it into two posts, as I still havent explained much as to “what I look for” and how all of this comes together. Not to mention the 30 or 40 more symbols I need to list. So….watch for part 2.