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Inter Market Analysis

Inter market analysis is a series of articles studying related segments of the market to identify lead lags between trends in each segment. This can often forewarn you of impending changes in trend and allow for planning of required action based on it. For example midcaps v/s large caps, currencies v/s commodities and US markets v/s European markets and so on. In a global environment inter-market relationships are not restricted to a country but between countries and their respective asset classes as well.

US 10 year T Notes

US 10 year notes are bouncing back in wave 2 of C. Next resistance is at 126, as wave 2 is not clearly over. Once complete however wave 3 down would break to new lows below 124.

notes 161017

BSE Metals

The Metals sector saw a correction last month as expected and is now trending higher again. The fall was 3 waves and retraced 38.2% to the lower Bollinger Band. That was minor wave iv as shown and wave v is extending and therefore not over. Expect higher metal stocks in the coming days till wave v completes a 5 wave advance.

metals 101017

US 30 year bonds

The US 30 year bonds show a impulsive decline that maybe extending anyway. If true then the 30 year bond yields are due for a sharp spike up in the coming weeks above the high seen in March at 3.2%. The price of the bond futures can drop to 146 in wave 3 as shown below.

bonds 101017

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