Gold Trading Boot Camp: How to Master the Basics and Become a Successful Commodities Investor

CHAPTER 13

Intermarket Analysis—The Tape Tells a Story

First thing, every morning (which normally begins for me before 4 A.M. EST), I want to know how much the prices of gold and silver have changed since I last looked. Then, I want to know the price changes in everything else. And I mean everything—every market sector around the world, all macromonetary and mining fundamental input, and everything in the metals markets.

On my desk is the quote board—three computer screens that give me the information for many market sectors. I’m not always looking for the same thing. Sometimes, I’m looking for the market sector that has had the largest change while I was sleeping. I may be anticipating that a certain market sector will soon begin moving, reversing, or accelerating, and I will look at that sector first. Or, I might first examine whichever market sector has been making the biggest headline news lately, or the market that has been dominant in leading other markets directionally.

It all depends. But, over the course of the day, I will examine every sector. Usually, I start off by peeking at gold and silver, followed by fixed-income and then foreign exchange, key market indicators. Finally, I’ll review all the global stock indexes, and sectors within each country. Then, I’ll turn my attention to the entire commodities markets, from grains to petroleum, from base metals to tropical commodities and the meats.

Having a complete, top-to-bottom image of the most recent price changes in ...