Product Description

Praise for INTERMARKET ANALYSIS

"John Murphy has done it again. He dissects the global relationships between equities, bonds, currencies, and commodities like no one else can, and lays out an irrefutable case for intermarket analysis in plain English. This book is a must-read for all serious traders."
–Louis B. Mendelsohn, creator of VantagePoint Intermarket Analysis software

"John Murphy’s Intermarket Analysis should be on the desk of every trader and investor if they want to be positioned in the right markets at the right time."
–Thom Hartle, President, Market Analytics, Inc.

"This book is full of valuable information. As a daily practitioner of intermarket analysis, I thought I knew most aspects of this invaluable subject, but this book gave me several new ideas. I thoroughly recommend it for beginners and professionals."
–Martin Pring, President of Pring.com and editor of the Intermarket Review Newsletter

"Mr. Murphy’s Intermarket Analysis is truly the most efficient and unambiguous way to define economic and fundamental relationships as they unfold in the market. It cuts through all of the conflicting economic news/views expressed each day to provide a clear picture of the ‘here and now’ in the global marketplace."
–Dennis Hynes, Managing Director, R. W. Pressprich

"Master Murphy is back with the quintessential look at intermarket analysis. The complex relationships among financial instruments have never been more important, and this book brings it all into focus. This is an essential read for all investors."
–Andrew Bekoff, Technical Strategist, VDM NYSE Specialists

"John Murphy is a legend in technical analysis, and a master at explaining precisely how the major markets impact each other. This updated version provides even more lessons from the past, plus fresh insights on current market trends."
–Price Headley, BigTrends.com, author of Big Trends in Trading

Product Details

• Amazon Sales Rank: #34751 in Books
• Published on: 2004-01-28
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 288 pages

Review
“…valuable reading for the professional because it provides a detailed overview of a subject that still attracts relatively little attention...” (The Technical Analyst, April 2004)

From the Inside Flap
Intermarket analysis has come a long way in the ten years since John Murphy wrote his groundbreaking Intermarket Technical Analysis: Trading Strategies for the Global Stock, Bond, Commodity, and Currency Markets. Although the idea that global markets were linked to each other was once viewed with skepticism, intermarket analysis is now considered among today’s most important technical disciplines. Today, market observers look to history for parallels that may predict future market performance.

In Intermarket Analysis: Profiting from Global Market Relationships, Murphy incorporates and reflects on the most recent world market data to show how seemingly disparate world markets interact and ultimately influence each other. Beginning with a brief overview of the intermarket changes that launched the bull market of the 1980s, Intermarket Analysis next revisits the stock market crash of 1987 and its importance to the development of intermarket theory. The author then discusses the 1990 bear market with emphasis on its relevance to later global events. Finally, the text offers in-depth coverage and analysis of the deflation trend that resulted in the bursting of the stock market bubble in 2000 followed by three years of stock market decline.

Citing recent world events that have had a profound impact on even longstanding economic relationships, Murphy shows us what earlier intermarket models are still working and, more importantly, what has changed. Based on the premise that intermarket analysis is not a "static" model, he examines the overall economic impact of such events as escalating tensions and wars in the Middle East, the decade-long downward spiral of the Japanese economy, and global over-investment in technology stocks.

Drawing on his vast experience as both an educator and an expert trader, the author lays out his key tools to understanding global markets and illustrates how these tools can help today’s serious investors profit in any economic climate. Armed with the knowledge of how economic forces impact the various markets and sectors, investors and traders can profit by exploiting opportunities in markets about to rise and avoiding those poised for a fall.

From the Back Cover
Praise for INTERMARKET ANALYSIS

"John Murphy has done it again. He dissects the global relationships between equities, bonds, currencies, and commodities like no one else can, and lays out an irrefutable case for intermarket analysis in plain English. This book is a must-read for all serious traders."
--Louis B. Mendelsohn, creator of VantagePoint Intermarket Analysis software

"John Murphy’s Intermarket Analysis should be on the desk of every trader and investor if they want to be positioned in the right markets at the right time."
--Thom Hartle, President, Market Analytics, Inc. (thomhartle.com)

"This book is full of valuable information. As a daily practitioner of intermarket analysis, I thought I knew most aspects of this invaluable subject, but this book gave me several new ideas. I thoroughly recommend it for beginners and professionals."
--Martin Pring, President of Pring.com and editor of the Intermarket Review Newsletter

"Mr. Murphy’s Intermarket Analysis is truly the most efficient and unambiguous way to define economic and fundamental relationships as they unfold in the market. It cuts through all of the conflicting economic news/views expressed each day to provide a clear picture of the ‘here and now’ in the global marketplace."
--Dennis Hynes, Managing Director, R. W. Pressprich

"Master Murphy is back with the quintessential look at intermarket analysis. The complex relationships among financial instruments have never been more important, and this book brings it all into focus. This is an essential read for all investors."
--Andrew Bekoff, Technical Strategist, VDM NYSE Specialists

"John Murphy is a legend in technical analysis, and a master at explaining precisely how the major markets impact each other. This updated version provides even more lessons from the past, plus fresh insights on current market trends."
--Price Headley, BigTrends.com, author of Big Trends in Trading

Customer Reviews

Great Rewrite of a Landmark Work
The original book Intermarket Technical Analysis was great for its time, however some of the relationships it described change in a deflationary environment which the author suggests we are in. However, the best reason for the rewrite was the writing in the earlier book was terrible in my opinion. It was a terribly boring book -- even if you are interested in the topic.

This book is different, and is a much better book. It also seems to me that the sector analysis coverage is a little more thorough (although I have not opened them up side by side to tell).

The only downside of this book is I don't think it gives you as many practical tools for tracking the business cycle and sector rotation as Pring's book, how to select stocks using technical analysis. It will give you the basics though, relying heavily on comparative relative strength.

If you want to see the big picture and understand how the markets are tied together, I can without hesitation recommend this book. There are several other books that complement this one as well.

A Panoramic Market View
John Murphy's "Intermarket Analysis" is an updating of his excellent 1991 text "Intermarket Technical Analysis". Both books are the most clearly written and thought-provoking texts on this topic that I have encountered.

In the interest of disclosure, let me say that I do not know Mr. Murphy; nor has he or his publisher solicited this review. His editor at Wiley, Pamela Van Giessen, also edited a book I wrote on The Psychology of Trading. Knowing Ms. Van Giessen's integrity in a business that too often lacks that virtue, and having enjoyed Murphy's first book on the topic, I was eager to give "Intermarket Analysis" a thorough read.

Murphy begins with a review of the markets from the 1980s, recapitulating themes from the first book, including the close linkages among the currency, bond, commodities, and stock markets. His discussion of the role of oil and gold in economic slumps and booms is first rate, as he traces the interplay among these markets during the first Persian Gulf War and then during the "stealth bear market" of 1994. Throughout these presentations, Murphy captures qualitative relationships between markets that provide inspiration for traders interested in quantitative modeling. For example, the relationship between oil stocks and crude oil prices and the CRB/Bond Ratio are promising tools in capturing shifts in commodity prices that tend to impact the stock indices. I was particularly intrigued by his presentation of sector relationships during economic/market cycles, including the relative performance of cyclical and consumer stocks.

Where Murphy's book really shines, however, is in its explanation of intermarket relationships in a deflationary environment. He captures these relationships in his account of the recent bear market, drawing upon such diverse intermarket relationships as semiconductor stocks, Japanese markets, the Australian dollar, and the yield curve. This alone is a major advance over his previous text. At the end of the book, he traces the start of the recent bull market, illustrating the transition from a deflationary environment to an inflationary one--a pattern that also occurred after the great bear market of the 1930s.

Weaknesses in this book, from this reviewer's perspective, include an overemphasis on charts and visual data at the expense of quantitative treatments and a glib treatment of the Kondratieff Wave (long-term economic cycles). That having been said, this is an excellent market book. The presentation of sector rotation during economic cycles alone provided enough ideas to keep me busy with modeling efforts. Chart-based technical analysts and quants alike can find value in Murphy's work.

Brett Steenbarger
www.brettsteenbarger.com

Excellent Book
I find myself always picking up this book for questions involving intermarket relationships. Stocks, bonds, commodities. There are even historical reviews of intermarket relationships in the book as well. Don't be fooled by the title, the author does discuss US markets very well. It is an easy read without technical jargon. Sure, the Phd of economics would probably be quite bored with the material but for the layman and BA student....this is a terrific reference with all meat and no fat!