8 Key Intermarket Dynamic Charts
Everyone Should Have These On Their Watchlist
A lot of people look at Technicals, Fundamentals, and Macro, but often forget to confirm these signals with Intermarket Analysis, which is a study of how different assets/sectors move in relation to other assets/sectors. This truly does help in providing further confluence/warning signals in the market.
We’ll go over 8 key intermarket charts that all our members should be aware of because it’ll help increase the odds of being on the right side of the market. These intermarket relationships will include names such as Gold, Silver, USD, Copper, Chinese Yuan, ISM Manufacturing PMI, Bitcoin, Oil and some ratios (like Gold/Silver and Copper/Gold) in order to understand how different factors help confirm or reject price movements in different key assets. By the end of this article, these intermarket charts should provide you a significant Edge (especially when used alongside our Cycles Forecast). Let’s dive in!
Inverted 10-Year Real Yield And Gold
Gold has inversely been correlated with 10-year real yield since at least 2007. 10-year real yield is simply the 10-year Treasury yield minus 10-year inflation expectations. The orange line below is Gold and the blue line is the inverse 10-year real yield. So, when the blue line is rising, it means the 10-year real yield is falling and vice-versa. Interestingly, since late-2022 this relationship has been diverging where the 10-year real yield has been rising, but Gold has also been rising.
A lot of this can be attributed to investor expectations, central banks around the world buying Gold at record levels, and geopolitical tensions that have been on the rise. However, this divergence does signal that at some point either Gold is going to reverse OR 10-year real yield is going to decline (either through falling 10-year Treasury yield or through rising inflation). Our bet is that the 10-year real yield is going to decline (i.e., rise on an inverted chart) and we think that Gold investors are correct today.
Dollar And Silver
An important Silver relationship to monitor is the negative correlation between USD ($DXY) and Silver. When USD decline, it’s typically a tailwind for Silver and when USD rises, it’s usually a headwind. Silver investors should monitor this on a weekly basis at least because when USD and Silver are both moving in the same direction, it usually means that one of them is lying.
Our next 6 intermarket charts are going to explore a lot of other key assets like Copper, Oil, Bitcoin, Precious Metals, while considering factors like ISM Manufacturing PMI, Chinese Yuan, and different ratios. These 6 charts are a must know and have for our paid members. Internally, we monitor these (and more) on a regular basis when looking at the intermarket analysis component of our analysis. Today, we’re ready to share these 6 key ones with you! The last one in special is going to be a real Money Maker, providing a true Edge!