KEY MARKET RELATIONSHIPS
These then are the primary intermarket relationships we'll be working on. We'll beginin the commodity sector and work our way outward into the three other financialsectors. We'll then extend our horizon to include international markets. The key relationships are:
1. Action within commodity groups, such as the relationship of gold to platinum or crude to heating oil.
2. Action between related commodity groups, such as that between the precious metals and energy markets.
3. The relationship between the CRB Index and the various commodity groups and markets.
4. The inverse relationship between commodities and bonds.
5. The positive relationship between bonds and the stock market.
6. The inverse relationship between the U.S. dollar and the various commodity markets, in particular the gold market.
7. The relationship between various futures markets and related stock market groups, for example, gold versus gold mining shares.
8. U.S. bonds and stocks versus overseas bond and stock markets.