Quote from annaland:
Can you please define intermarket?
Edit:
When I think of intermarket, I think of information (price, quotes, etc) being disseminated across all exchanges trading that security...
Oh, sorry. Ever since reading Murphy's book on the subject in the mid '90s, I always regarded "intermarket" relationships as referring to different markets that have a "meaningful" correlation in price movement, either positive or negative.
Unfortunately, it never worked quite as well for me as advertised in day to day trading. And so I'm curious to know if people find the analysis of such intermarket relationships to have real tangible value in their actual nuts and bolts, day to day trading. Perhaps it was a matter of time frame or some such, but I never found a related market to give better "signals" than the market I was looking to either enter or exit. It also didn't provide confirmation that was better than the traded market itself, either. And so, for my own limited purposes, I found it largely redundant. But then, I'm not a big picture guy.
This is why I asked the following question of a previous poster:
1. Suppose one of the interrelated markets you follow moves in a meaningful way, by whatever standard you judge as meaningful. Will you get into the
other market even before that other market gives you its own setup or signal? Or will you also wait for that other market to generate its own setup or signal before you make your move?
2. Suppose a market gives you a stand-alone setup or signal, even though the interrelated market does not. Will you act on the stand-alone setup or signal, or will you necessarily wait for confirmation from the interrelated market?
I wanted to know whether it was
effectively redundant and only gave comfort, or if it provided tangible, nuts and bolts, bottom line value.
That, and I was bored. But curious nonetheless.
