| A | B |
|---|
| Intermarket relationships/intermarket analysis | (1) It suggests that important directional clues can be found in related markets |
| Intermarket work | (1) has a more outward focus (2) represents a different emphasis and direction in technical work. |
| One of the great advantages of technical analysis | (1) is that it is very transferable. |
| A technical analyst can do a pretty adequate job of analyzation | (1) If a market is reasonably liquid, and can be plotted on a chart |
| intermarket analysis | (1) requires the analyst to look at so many different markets |
| There are 3 levels of understanding | (1) Relational (2) Fundamental (3) Technical |
| We have 4 different money markets | (1) Currencies (2) Bonds (3) Commodities (4) Equities(stocks). |
| Currencies (Foreign Exchange Markets) l | (1) lie at the heart of the money flow |
| Who buys and sells currencies ? | all of these groups in some capacity (1) Governments (2) central banks (3) investors (4) speculators |
| Currency transactions are from real businesses | (1) Governments (2) central banks (3) investors (4) speculators |
| (1) Governments (2) central banks (3) investors (4) speculators | (1) are real businesses that simply need to exchange currency to purchase goods and services or to pay suppliers |
| the largest percentage of currency transactions | come from (1) speculators (2) investors |
| Currencies (Foreign Exchange Markets) l | (1) everything has to come back into the currencies market (2) has to come back to the forex market |
| The Bonds market | (1) is nothing but IOUs (2) bonds are loans, short and simple (3) tradable on the open market |
| Commodities | is nothing but things that consumers around the world use (1) corn (2) wheat (3) soy (4) oils -- all of those things |
| The Equities market | (1) is nothing more than the companies |
| (1) Governments (2) central banks (3) investors (4) speculators (5) everybody | at some point is going to need some sort of cash to move whatever they have -- whether it's an actual contract; whether it's the corn; whether it's an actual company doing a transaction |
| Currencies, forex specifically, | (1) is where all of the money is going to be going in and out of on a regular basis |
| Forex -- Cash | (1) the most liquid financial market in the world |
| Forex -- Cash ( the most liquid financial market in the world). | (1) to-date, 2020, it's six point six trillion dollars (6.6 Trillion) liquid or cash (2) it is the daily largest liquid market based on cash |
| The largest market overall | (1) is the largest market overall (2) is nothing more than IOUs (3) it's contracts between government people |
| the largest market overall | (1) the debts (2) the bonds (3) the IOUs |
| Forex | (1) is only the most liquid (2) is not the largest market (3) is the most liquid market in the world |
| Who is inside of the Forex Markets? | (1) Banks "Smart Money" 2) Corporations 3) Governments 4) Retail traders |
| Everybody, every company, government | (1) at some point has to go thru this market -- at some point |
| Bond: Bond Market | (1) give us clear signals about risk appetite and the flow of money |
| Bonds | (1) are the world's debt capital markets, because this is where money is borrowed by and lent to governments, companies, municipal organizations or countries. |
| I owe you money; bonds | (1) reflects the cost of actually borrowing money (2) tell us about the money flow between all the various markets |
| Interest paid | (1) reflects the cost of actually borrowing money |
| Bonds are going to tell us | (1) the appetite for risk (2) if we should pay attention and note if the market is going to be a little bit more risky, then we can go with assets or risk off. |
| If the Bond Market | (1) is telling us that we do not need to be as risky then we can play with assets that are risk on. |
| The Bond Market | (1) tell us market sentiment and risk, as well as the longer term economic outlook which reflects interest rates, inflation and more which affects currency markets. |
| Bond Types | 1) Treasury Bills -- matures in less than a year -- discounted & paid on maturity date 2) Treasury Notes -- matures in 1-10 yrs -- paid every 6 months until maturity date 3) Treasury Bonds -- matures in 10 - 30 yrs -- paid every 6 months until maturity date |
| Bond Components | (1) par value -- face value (how much) -- fixed until maturity doesn't change (2) coupon -- interest rate offered - fixed until maturity date (3) maturity - the time to repay par value - fixed period to maturity |
| A Commodity | (1) is a basic good used in commerce that is interchangeable with other goods of the same type (2) traditional examples of commodities include (a) grain (b) gold (c) beef (d) oil (e) natural gas |
| Commodities that are traded are typically sorted into four categories: | (1) metal (2) energy (3) livestock (4) meat (5) agriculture |
| Commodities | (1) can be a way to diversify your portfolio beyond traditional trading (2) |
| Commodities are known to be risky investment propositions because their market (supply & demand) | (1) is impacted by uncertainties that are difficult or impossible to predict; such as (a) unusual weather patterns (2)epidemics (3)disasters both natural and man-made (4) fires (5) wild fires |
| Ways to invest in commodities | (1) futures contracts (2) options (3) exchange-traded funds (ETFs) |
| Equities | (1) also known as the stock market |
