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.


BSE HC - the health care index. Last time I wrote it still had wave V of 5 to form. Now that leg up has started and is heading towards the upper end of the channel at 9650. 



In last months Long Short report I wrote about the potential for Dow Transports to hit a new high once more. While it has not happened we have a lead indication that it could be soon as the Russel 2000 of smaller stocks has already led the way up to a new high.



US 10Y Tbills - Highlighted as the primary driving factor for pressure on world equities months ago, I maintain the same will remain for the rest of the year. The chart of US 10 year Tbills shows we are in wave 5 of 3 down. Which might complete in the next few days of panic after which a wave 4 counter trend move to 127 will form and could consume weeks together. This period will provide some relief to world equities sentimentally as yields stabilize for some time.


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