Another Correlation to Bite the Dust

Markets are in a constant state of change. When it comes to intermarket relationships, It's always been my goal to find what is working now, to use it for all it's worth and then recognize when it no longer works. Of those three steps, the last one is the most difficult to do.

This is especially true when the correlation has been working well. Many traders have a tendency to stick with something that worked well in the past, even when it is no longer valid. For example, less than a year ago, every morning was dominated by news from Europe, and that would influence the direction of U.S. markets. A simple yet reliable correlation developed:...438 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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