Intermarket Technical Analysis
by John Sweeney
Trading and Portfolio Management for the Futures, Stock, Bond, and Currency Markets
John Wiley & Sons, Inc.
605 Third Avenue
New York, NY 10158-0012
Author: John J. Murphy
Price: $39.95, 256 oversized pages, available May 1991
John Murphy, author of a certified bible of technical analysis (Technical Analysis, published by John
Wiley & Sons), a book now used in the training program for the Certified Market Technician (CMT)
exam, has now come up with an elaboration of the business cycle idea for the
commodities/bonds/equities cycle in Intermarket Technical Analysis. He's also the first that I know of to
include the influence of foreign currencies on the business cycle.
Martin Pring introduced me to this line of fundamentalist thought in his definitive book on technical
analysis. Back then (in 1982), I'd gotten as far as trusting the business cycle to deliver market fluctuations
and believing that bond people were smarter than stock, people, or at least a few months ahead of them. It
was Pring who pointed out that even ahead of bonds were commodities, often a reflection of inflation.
Since then, the U.S. dependence on imported goods has risen, though it's still less than 12% of total
purchases, a relatively low value. Oil immediately comes to mind, but there are thousands of other raw
materials as well as BMWs.