Traders are realizing that the days of following only one market are long gone. Technical analysts must understand the impact of trends in related markets all over the globe. Trying to trade the markets without intermarket awareness is very dangerous.
Even if you are using intermarket analysis, the relationships keep shifting in the evolving complex global economy.
Intermarket Analysis and the US Stock Market
The seemingly-invincible US stock markets powered higher in 2014, still directly fueled by the Fed’s epic quantitative-easing money printing. But 2015 is shaping up to be radically different from the past couple years. The Fed effectively abandoned the stock markets when it terminated its bond buying late last year. So this year we will finally see if these lofty stock markets can remain afloat without the Fed.
So far things have been all over the map with US equities and in turn, we have new market correlations. On January 27th, the Dow was down almost 600 points from the previous day’s highs but the 30 year Treasury yields were at 2.39% – the lowest level ever.
Go figure! These markets aren’t for the faint of heart as the relationships continue to change.
How Can VantagePoint Trading Software Help?
The good news is we’ve got you covered. VantagePoint Software factors in these shifting relationships to forecast market trends based on the most sophisticated intermarket analysis in the industry. It uses a neural network process to identify which markets have the most influence on a target market, then produces a set of intermarket data to generate predictive indicators for short-term price trend forecasts for the new market realities.
The math and science behind the global market analysis conducted in VantagePoint is something the human just is not capable of. While the individual trader doesn’t have to do the calculations, it’s still important to continually examine the new paradigm.