CONTENTS

Acknowledgments

Introduction

PART I The Old Normal

Chapter 1 Intermarket Analysis: The Study of Relationships

All Markets Are Related

Asset Allocation Strategies

ETFs Have Revolutionized Intermarket Trading

Sector Rotation and the Business Cycle

Stocks Peak and Trough before the Economy

The Role of Oil

Advantages of Using Charts

Viewing the Big Picture Is Important

Intermarket Implications for Technical Analysis

A New Dimension to Technical Work

Intermarket Work Is an Evolutionary Step

Why Relationships Change

Intermarket Principles

Review of the Old Normal

CHAPTER 2: Review of the Old Normal

1980 Was a Key Turning Point

The End of the Inflationary 1970s

The 1987 Crash Reinforced Intermarket Trends

The Two Iraq Wars

The 1994 Stealth Bear Market Follows Intermarket Script

Echoes from the 1930s

The Japanese Bubble Bursts in 1990

Chapter 3 The 1997–1998 Asian Currency Crisis

The Asian Currency Crisis Starts in 1997

Bonds and Stocks Start to Decouple

1997 and 1998 Were Only a Dress Rehearsal

Intermarket Lessons of 1997 and 1998

The Asian Effect Overrides the Fed

Two Deflationary Events of the 1990s

Deflationary Effect on Bond Yields

Japanese Deflation and U.S. Interest Rates

Summary

PART II The 2000 and 2007 Tops

Chapter 4: Intermarket Events Surrounding the 2000 Top

Events Leading up to the 2000 Top

Crude Oil Triples in Price

A Rise in Short-Term Rates Leads to an Inverted Yield Curve

REITs Benefit from Falling Stocks

Consumer Staples Start to Outperform

Market Lessons from ...

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