Tuesday, February 18, 2020

Info!! Intermarket Relationships: Thinking Inward Themes

Consider how the markets traded today:

* Treasury prices were up; yields were lower

* Stocks continued their fall into the trading make of belatedly 2008

* Commodity prices fell; most notably oil

* Consumer discretionary shares underperformed consumer staples stocks

* Financial as well as housing stocks underperformed the wide market

Broadly speaking, markets tin merchandise inwards risk-seeking or risk-shunning ways. How traders process Treasury debt relative to equities; how traders process riskier sectors of stocks relative to to a greater extent than defensive ones; how traders anticipate economical increment or weakness inwards their pricing of commodities: all of these reverberate themes inwards markets that enjoin yous a smashing bargain close the mood as well as persuasion of large marketplace participants.

Catching those themes early on inwards the trading session is quite helpful for short-term traders. Many ideas tin last formulated but past times gauging how riskier assets are trading relative to safer ones.
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