I think the way the markets are all linked and pull and push on one another is really fascinating, however, in most of the books I've read it says that you should stay away from that type of predictive trading and just do what the market is showing you on the charts. I think trying to piece everything together is fun, but again, I've read so many accounts of traders who place positions because they think they know what the market is going to do, then the news comes out exactly as they predicted and the market accommodates by twisting and bending in a way they were not expecting. For this reason, I like to keep it simple. This is probably why I'm only joining trends midway through, but I'm not placing life changing positions.
Still, I think it's all very interesting, and today I learned a little bit about the correlation between bonds, inflation, and rates expectations.
Inflation up = interest rates up. Interest rates up = bonds down. Bonds down = stocks up. Stocks up = gold down? gold down = what? and where does bitcoin fit into this? How much does a sailboat cost?
Still, I think it's all very interesting, and today I learned a little bit about the correlation between bonds, inflation, and rates expectations.
Inflation up = interest rates up. Interest rates up = bonds down. Bonds down = stocks up. Stocks up = gold down? gold down = what? and where does bitcoin fit into this? How much does a sailboat cost?