Monday, August 11, 2008

Inter-Market Relationships - Barrick Gold Corporation (USA) (Public, NYSE:ABX)

A strong dollar means weak gold. Take advantage of inter-market relationships to find trading opportunities. ABX from the WL set up a low risk short today. Friday I shorted GOLD from the pre-market gapper list.

Anarco had a great day today. Check out his trades here.


Day Tradr said...

There is so much to learn from you. Can you give a few more examples of inter market relationship?

TJ said...

Hey Day tradr,

Relationships between 4 major financial markets: stocks, bonds, commodities and currencies. In theory under normal market conditions there are inverse relationships between USD and commodities as well as bonds and commodities. There's a positive relationship between bonds and stocks. Gold in particular, is a hedge against a weak dollar. So now that oil and other commodities are weakening, the dollar is bouncing and stocks are in rally mode.