Intermarket Fundamental Trading notes – David Norman
Following on from the notes that I had collected from the Trading Symposium, I had scribbled down more notes from a chap called David Norman. He trades the markets using fundamentals and looks for more long term based trades. I personally don’t use fundamentals myself as I am a very short term trader.
However, here you are:
He uses RBS and MarketIndex to get his data.
He looks at the fundamentals for the following:
- Commodities
- Currencies
- Bonds
- Equities
Some observations:
- Stronger currency leads to expectation of rising interest rates
- Stronger commodities follow strong currency
- Bond prices move in the opposite direction to bond yields
- Bond yields move in the same direction to interest rates
- Bond prices move in the opposite direction to interest rates
- Equity markets rise
He personally trades the T-bonds as he finds that they move more predictably than other markets.
His book recommendation is Intermarket Analysis: Profiting from Global Market Relationships by John Murphy
