Trading with Intermarket Analysis: A Visual Approach to Beating the Financial Markets Using Exchange-Traded Funds - Wiley Trading

Brief Description: "A visual guide to market trading using intermarket analysis and exchange-traded fundsWith global markets and asset classes growing even more interconnected, intermarket analysis--the analysis of related asset classes or financial markets to determine their strengths and weaknesses--has become an essential part of any trader's due diligence. In Trading with Intermarket Analysis, John J. Murphy, former technical analyst for CNBC, lays out the technical and intermarket tools needed to understand global markets and illustrates how they help traders profit in volatile climates using exchange-traded funds. Armed with a knowledge of how economic forces impact various markets and financial sectors, investors and traders can profit by exploiting opportunities in markets about to rise and avoiding those poised to fall. Trading with Intermarket Analysis provides advice on trend following, chart patterns, moving averages, oscillators, spotting tops and bottoms, using exchange-traded funds, tracking market sectors, and the new world of intermarket relationships, all presented in a highly visual way. Gives readers a visually rich introduction to the world of intermarket analysis, the ultimate tool for beating the markets Provides practical advice on trend following, chart patterns, moving averages, oscillators, spotting tops and bottoms, using exchange-traded funds, tracking market sectors, and intermarket relationships Includes appendices on Japanese candlesticks and point-and-figure charting Comprehensive and easy-to-use, Trading with Intermarket Analysis presents the most important concepts related to using exchange-traded funds to beat the markets in a visually accessible format"--Marc Notes: Includes index.; A visual guide to market trading using intermarket analysis and exchange-traded fundsWith global markets and asset classes growing even more interconnected, intermarket analysis--the analysis of related asset classes or financial markets to determine their strengths and weaknesses--has become an essential part of any trader's due diligence. In Trading with Intermarket Analysis, John J. Murphy, former technical analyst for CNBC, lays out the technical and intermarket tools needed to understand global markets and illustrates how they help traders profit in volatile climates using exchange-traded funds. Armed with a knowledge of how economic forces impact various markets and financial sectors, investors and traders can profit by exploiting opportunities in markets about to rise and avoiding those poised to fall. Trading with Intermarket Analysis provides advice on trend following, chart patterns, moving averages, oscillators, spotting tops and bottoms, using exchange-traded funds, tracking market sectors, and the new world of intermarket relationships, all presented in a highly visual way. Gives readers a visually rich introduction to the world of intermarket analysis, the ultimate tool for beating the markets Provides practical advice on trend following, chart patterns, moving averages, oscillators, spotting tops and bottoms, using exchange-traded funds, tracking market sectors, and intermarket relationships Includes appendices on Japanese candlesticks and point-and-figure charting Comprehensive and easy-to-use, Trading with Intermarket Analysis presents the most important concepts related to using exchange-traded funds to beat the markets in a visually accessible format--; Provided by publisher. Jacket Description/Flap: Intermarket analysis, as the name implies, is the analysis of two or more related asset classes or financial markets to determine the strengths or weaknesses of the financial markets or asset classes being considered. Instead of looking at financial markets or asset classes on an individual basis, it looks at several strongly correlated markets or asset classes--most often, stocks, bonds, commodities, and currencies. Although once viewed with skepticism, intermarket analysis has now become an accepted part of technical market analysis. Trading with Intermarket Analysis will show you that it has also become an increasingly indispensable part of it. Drawing on his vast experience as both an educator and an expert trader, John Murphy explains what he calls the "new normal" in intermarket relationships that exists as we enter the second decade of the new century. Through a combination of sound economic principles and striking color graphic illustrations, he reveals what those "new normal" relationships are and how you can take advantage of them. In addition, Murphy shows how intermarket analysis plays an important role in asset allocation and sector rotation strategies, both of which are tied to the business cycle, and details how exchange-traded funds (ETFs) have greatly facilitated the application of intermarket strategies. Jacket Description/Back: PRAISE FOR TRADING WITH INTERMARKET ANALYSIS "John Murphy makes it absolutely clear that all markets are interrelated. It would be silly to trade stocks without keeping an eye on interest rates, currencies, and gold. In this valuable new book, the master of technical analysis teaches all of us how to monitor 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 to extend beyond the market itself to also encompass interrelationships with other markets--a broader perspective that is essential not only in understanding the big picture but also in providing valuable early warning signs through lead-lag relationships. The best part of Trading with Intermarket Analysis is that these critical market interactions are vividly illustrated with more than 150 color charts, providing valuable food for thought not only for chartists but also fundamentalists, as an understanding of intermarket connections is essential for all traders. One lesson I have learned from interviewing market wizards is that intermarket price action provides essential trading clues. In this context, Murphy's book offers traders a valuable resource and idea repository."--JACK SCHWAGER, author of Market Wizards and the Schwager on Futures book series "In today's lightning-fast, interconnected global markets, savvy traders capitalize and profit on intermarket movements. Murphy's new book shows traders how to read the charts and understand intermarket dynamics in an easy-to-understand visual fashion. Learn how to utilize ETFs to trade and profit off these key market drivers. Long a friend to the TraderPlanet.com community, Murphy once again shines with his latest must-read book for all traders."--LANE J. MENDELSOHN, founder, TraderPlanet.comTable of Contents: Acknowledgments ix Introduction xi PART I THE OLD NORMAL 1 CHAPTER 1 Intermarket Analysis: The Study of Relationships 3 CHAPTER 2 Review of the Old Normal 15 CHAPTER 3 The 1997-1998 Asian Currency Crisis 25 PART II THE 2000 AND 2007 TOPS 35 CHAPTER 4 Intermarket Events Surrounding the 2000 Top 37 CHAPTER 5 The 2002 Falling Dollar Boosts Commodities 47 CHAPTER 6 Asset Allocation Rotations Leading to the 2007 Top 59 CHAPTER 7 Visual Analysis of the 2007 Market Top 73 PART III THE BUSINESS CYCLE AND ETFS 89 CHAPTER 8 Intermarket Analysis and the Business Cycle 91 CHAPTER 9 The Impact of the Business Cycle on Market Sectors 105 CHAPTER 10 Exchange-Traded Funds 123 PART IV THE NEW NORMAL 129 CHAPTER 11 The Dollar and Commodities Trend in Opposite Directions 131 CHAPTER 12 Stocks and Commodities Become Highly Correlated 145 CHAPTER 13 Stocks and the Dollar 161 CHAPTER 14 The Link between Bonds and Stocks 179 CHAPTER 15 The Link between Bonds and Commodities 197 Conclusion: It's All about Relationships 215 About the Author 227 Index 229Biographical Note: John J. Murphy is a former technical analyst for CNBC and has over forty years of market experience. He is senior writer for StockCharts.com, a website that specializes in financial charts and technical analysis education. Murphy has appeared on Bloomberg TV, CNN, FOX, and the "Nightly Business Report," and has been widely quoted in several other media outlets. In 1992, he was given the first award for outstanding contribution to global technical analysis by the International Federation of Technical Analysts, and received a lifetime achievement award from the same organization in 2014. He is a recipient of the Market Technicians Annual Award. In addition to two previous books on intermarket analysis, he also authored two editions of "The Visual Investor," all of which are published by Wiley. He also authored "Technical Analysis of the Financial Markets." Murphy has a bachelor of arts in economics and a master of business administration from Fordham University. He currently lives in New Jersey. Publisher Marketing: A visual guide to market trading using intermarket analysis and exchange-traded funds With global markets and asset classes growing even more interconnected, intermarket analysis--the analysis of related asset classes or financial markets to determine their strengths and weaknesses--has become an essential part of any trader's due diligence. In "Trading with Intermarket Analysis," John J. Murphy, former technical analyst for CNBC, lays out the technical and intermarket tools needed to understand global markets and illustrates how they help traders profit in volatile climates using exchange-traded funds. Armed with a knowledge of how economic forces impact various markets and financial sectors, investors and traders can profit by exploiting opportunities in markets about to rise and avoiding those poised to fall. "Trading with Intermarket Analysis" provides advice on trend following, chart patterns, moving averages, oscillators, spotting tops and bottoms, using exchange-traded funds, tracking market sectors, and the new world of intermarket relationships, all presented in a highly visual way. Gives readers a visually rich introduction to the world of intermarket analysis, the ultimate tool for beating the markets Provides practical advice on trend following, chart patterns, moving averages, oscillators, spotting tops and bottoms, using exchange-traded funds, tracking market sectors, and intermarket relationships Includes appendices on Japanese candlesticks and point-and-figure charting Comprehensive and easy-to-use, "Trading with Intermarket Analysis" presents the most important concepts related to using exchange-traded funds to beat the markets in a visually accessible format.