Intermarket Analysis for Day Trading?

M

monty21

I'm curious what tools you guys use for intermarket trading in terms of day trading.... not swing trading.

I watch ETFs like USO (crude oil fund) or TLT (20+ yr treasuries) to gauge market sentiment. If crude oil, treasuries or any other instrument falls/rallies it frequently has a effect on the stock market. The arbs help move the whole market. Anyway, this is a simple example.

I'm curious how other traders view intermarket analysis. Is it suitable for day trading? I feel like many of the spikes in crude oil (on crude inventoires # release) may be better to fade... actually try to call top in USO rather than buy other stocks in S&P 500. I guess every scenario is different. I highly do not recommend shorting natural gas ETFs.... those don't believe in Murhpy's law, at least when I try to scalp them.

What is some good software to conduct more overhead research? Is examining price behaivor in Excel sufficient? Perhaps some of you use Matlab or Mathematica?

Thoughts?
 
You might want to forget about IMA-as you might well be wasting your time if you are using Oil futures-the bastards that deal in Oil are worse than the mafia.

Trade a market that the public likes-then you will have easy pickings.

The General
 
stevesbg wrote an excellent Journal which includes using multiple-time frames as well as intermarket analysis for trading the ES.

Link to Journal

You might want to avail yourself of its information before it gets buried under the rubbish.

Good Luck
 
Quote from MandelbrotSet:

stevesbg wrote an excellent Journal which includes using multiple-time frames as well as intermarket analysis for trading the ES.

Link to Journal

You might want to avail yourself of its information before it gets buried under the rubbish.

Good Luck
More...

Thanks...

Lost like a great thread although some technicals like MAs make me cringe. I'll surely go through the entire thread tomorrow morning with a open mind.

:)
 
Quote from monty21:

I'm curious how other traders view intermarket analysis. Is it suitable for day trading?...
More...

It's great...been using it since the late 80's and since the 90's for day trading.

Fancy software not needed.

You just need to pay attention to your charts of different markets side by side with the charts of your trading instrument along with paying attention to global events that have impact on the markets.

Mark
 
Also, here is a book which deals extensively with the subject from a neural networks/programming perspective.

Intermarket Trading Strategies

After years of using intermarket analysis for intra-day trading, I find that I just perfer to use multiple time-frame analysis.

Intermarket edges change over time, but multiple time-frame analysis doesn't (but range, volatility and market action can and do change over time though ... but they will be seen in a securities' price action, regardless).

Good trading
 
Thanks for the replies...

Just want to clarify that by day trading I mean closing positions by end of day. I won't be able to do anything like international arbitrage or selling the next morning.

Secondly, is it wise to subscribe for real-time quotes for all the futures and otc... that could run over $1,000 a month? I previously used ETFs, but USO for crude oil and TLT for longer treasuries doesn't seem sufficient. Are ETFs mis-representative?
 
Quote from MandelbrotSet:

You might want to avail yourself of its information before it gets buried under the rubbish.

Good Luck
More...

Now that is a real joke-coming from you-of all people:D

The General
 
Quote from The General:

Now that is a real joke-coming from you-of all people:D

The General
More...
I see this fool wants to "play stalker" :p

OK, that's fine by me. :cool:

Here are some recent reviews of the the general's (note lower case) thread on "Market Intelligence - the Key to Profits" thread:
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"This is one of the most useless threads on ET"
Link


"May you learn everything the general has to offer, and then realize you still find yourself many years away if ever, from trading success"
Link
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ROTFLMAO, this is obviously some of the trash that you want to avoid monty21! :p
 
Quote from NihabaAshi:

It's great...been using it since the late 80's and since the 90's for day trading.

Fancy software not needed.

You just need to pay attention to your charts of different markets side by side with the charts of your trading instrument along with paying attention to global events that have impact on the markets.

Mark
More...

That is what I do to get an indication if the money is getting in or out of the markets in the macro level at the moment and is essential for day trading.
 
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