Ashraf's Book: Currency Trading and Intermarket Analysis

One more thing: predicting general market direction is key, but it is also important to know what to do when markets are going one way or another. Thus, one of the goals of this website is to provide deep understanding of the several intermaket relationships in a way that enables traders to take positions on FX, commodities and fixed income with better assurance. During a rallying equity market for instance, it became increasingly clear to most readers of the site what to do; (sell yen, sell USD, buy comms currencies, sell bonds) and vice versa. Then the game changed a bit and became largely oil driven (where oil became the INdependent variable for gauging risk appetite and STOCKS became the DEpendent variable). Weve also had some instants when USD briefly moved lower despite weak US equities (and I explained the reason was due to continued gains in EM equities keeping risk capital away from USD). What is important here is knowing what to do with 5 or 6 or 7 or more currency pairs when equities or oil or both are going one way or another. We could also get hints from bond yields and using their technicals in studing future FX and equity movements.

Ashraf