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Technical Analysis: Power Tools for Active Investors
book

Technical Analysis: Power Tools for Active Investors

by Gerald Appel
March 2005
Intermediate to advanced
264 pages
6h 55m
English
Pearson
Content preview from Technical Analysis: Power Tools for Active Investors

Measuring the Market Mood with the Intermediate Monetary Filter

The relationship between the direction of stock price movement and trends in interest rates has been long recognized. As a general rule, stocks tend to rise in price during periods that interest rates decline and to make relatively little progress, on balance, during periods that interest rates advance. Chart 2.2 illustrates these relationships.

Chart 2.2. Major Trends in the Stock Market Versus Major Trends in Interest Rates

A number of bear markets have come to an end as interest rates peaked—for example, in 1970, 1974, 1982, and 1990, but not the 2000–2002 bear market. You can see the correlations between secular long-term trends in the stock market and secular long-term trends ...

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Publisher Resources

ISBN: 0131479024Purchase book