O'Reilly logo

Time the Markets: Using Technical Analysis to Interpret Economic Data by II Charles D. Kirkpatrick

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

7. Monetary Indicators

Monetary factors include interest rates, bond prices, spreads between interest rates, and credit. I test several of these monetary indicators to see if a moving average crossover system can be developed using their data for market timing. As always, with any method using market prices, a protective stop and trailing stop rule are applied from optimization of the in-sample data.

Rates

Interest rates are either short-term or long-term and high or low quality. I look at corporate Moody’s Baa rated interest rates to see if the riskier side on long-term interest rates can produce a viable system. Then I look at the least risky long-term rate, the U.S. ten-year bond rate. Finally, I look at the federal funds rate to see whether ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required