Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition
by Michael N. Kahn
Intramarket Relationships
Intermarket analysis can also be applied to similar markets (intramarket). For example, a spread between oats and corn can be used to take advantage of two commodities with some degree of substitutability. Two stocks in the same industry group can be analyzed this way, as well. For example, plot the ratio of one stock to another to measure performance. A stock can also be measured to its industry group or the group to the market as a whole. This is called relative strength analysis and is covered in Chapter 18, “Just What Makes a Stock (Bond, Commodity) Look Good?”
There are times when the market for a specific commodity becomes relatively illiquid and hedging a position is difficult. Canadian cash bond holders often ...
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