From the Inside Flap
Intermarket analysis, as the name implies, is theanalysis of two or more related asset classes or financial marketsto determine the strengths or weaknesses of the financial marketsor asset classes being considered. Instead of looking at financialmarkets or asset classes on an individual basis, it looks atseveral strongly correlated markets or asset classesmostoften, stocks, bonds, commodities, and currencies. Although onceviewed with skepticism, intermarket analysis has now become anaccepted part of technical market analysis. Trading withIntermarket Analysis will show you that it has also become anincreasingly indispensable part of it.
Drawing on his vast experience as both an educator and an experttrader, John Murphy explains what he calls the "new normal" inintermarket relationships that exists as we enter the second decadeof the new century. Through a combination of sound economicprinciples and striking color graphic illustrations, he revealswhat those "new normal" relationships are and how you can takeadvantage of them. In addition, Murphy shows how intermarketanalysis plays an important role in asset allocation and sectorrotation strategies, both of which are tied to the business cycle,and details how exchange-traded funds (ETFs) have greatlyfacilitated the application of intermarket strategies.
From the Back Cover
PRAISE FOR TRADING WITH INTERMARKET ANALYSIS
"John Murphy makes it absolutely clear that all markets areinterrelated. It would be silly to trade stocks without keeping aneye on interest rates, currencies, and gold. In this valuable newbook, the master of technical analysis teaches all of us how tomonitor and profit from intermarket relationships."—Dr.ALEXANDER ELDER, author of Trading for a Living,www.elder.com
"Murphy's basic premise is that a trader's analysis needs toextend beyond the market itself to also encompassinterrelationships with other markets—a broader perspectivethat is essential not only in understanding the big picture butalso in providing valuable early warning signs through lead-lagrelationships. The best part of Trading with Intermarket Analysisis that these critical market interactions are vividly illustratedwith more than 150 color charts, providing valuable food forthought not only for chartists but also fundamentalists, as anunderstanding of intermarket connections is essential for alltraders. One lesson I have learned from interviewing market wizardsis that intermarket price action provides essential trading clues.In this context, Murphy's book offers traders a valuable resourceand idea repository."—JACK SCHWAGER, author of MarketWizards and the Schwager on Futures book series
"In today's lightning-fast, interconnected global markets, savvytraders capitalize and profit on intermarket movements. Murphy'snew book shows traders how to read the charts and understandintermarket dynamics in an easy-to-understand visual fashion. Learnhow to utilize ETFs to trade and profit off these key marketdrivers. Long a friend to the TraderPlanet.com community, Murphyonce again shines with his latest must-read book for alltraders."—LANE J. MENDELSOHN, founder,TraderPlanet.com