Trading With Intermarket

Analysis John Murphy

Stockcharts.com

New Normal Relationships Dollar and CRB ↨ Opposite

Stocks and CRB ↑↑Together

Falling Bond Yields Have Hurt Stocks – Until Recently

Commodities and U.S. Dollar Trend in Opposite Directions

Stocks and Commodities Are Positively Correlated

Fed Impact on Bond/Stock Link

Flattening Yield Curve Boosts Homebuilding Stocks

Falling Bond Yield Drives Money to Dividend Paying Stocks

Corporate/Treasury Bond Ratio Rises and Falls With Stocks

Sept. Drop in High Yield/Treasury Ratio Warned of Stock Correction

Global Linkages

• Global stocks highly correlated

• Rising dollar favors U.S. stocks

• Emerging markets are linked to commodity prices

Global Markets Are Highly Correlated – But Dollar Impacts Leadership

Commodities and Emerging Markets Are Closely Linked

Chinese iShares and Coal Stocks Are Rising Together

Timber ETF Nears Bullish Breakout on Rising Lumber Price

WHAT INTERMARKET ANALYSIS DOES

Combines All Global Markets into a Unified and Coherent Whole Bridges Gap Between Fundamental, Economic, and Technical Analysis Adds a New Dimension to Traditional Technical Analysis

Evolution of Intermarket Technical Analysis

1991

Evolution of Intermarket Technical Analysis

2004

Evolution of Intermarket Technical Analysis

2012!