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

Did you like this? Share it:

Tags: , , , , , ,

Category: book reviews, Make Me Some Money Ideas, money