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Intermarket Snapshot

 

Above is a snapshot of the main intermarkets which affect the equity market. With bonds topping and the trend now being down, and commodities rising, we see a classic late bull cycle. The US dollar rising is going to begin to put pressure on risking commodities over the next year or so, and will eventually push it down if it continues. Commodities topping will be the final straw since the classic topping order goes bonds, stocks, commodities.

 

This is a summary of markets, their direction, and effect on the equity market, as well a the best fit cycle. The best fit cycle is an algorithm that looks at current activity and determines the best fit cycle that we are in. This in turn drives sectors and industries which outperform in that cycle, and would be best overweighted.
 


Along with the main intermarkets, it also good to watch interest rates, gold, oil, and inflation. The inflation ratio is a proprietary index that alerts us to inflation a few months before it happens. It has been quite reliable, and as can be seen above, is turned upwards in an uptrend currently. This is just a snapshot of the intermarkets to get a view of where we are at and what is happening.
 
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