Reading markets is focused on the high level market trends: where are markets going in the next 6 to 18 months?
It is true that dominant trends are visible by comparing the way 4 key investing asset classes move: stock markets, bond markets, commodity markets and currencies.
It is not their trend, but their trend within their chart pattern(s) and how they relate to each other that is the key to understand. That’s the basis but also challenge of reading markets.
Example, if the US Dollar reaches a major peak within a long term channel it probably means that it will correct, and, in doing so, it will push stock markets higher as well as commodities.
That is because all markets are associated to each other. Capital flows from one market to another one. If the majority of capital leaves one market, for instance stocks, and flows into the US Dollar, it indicates that some large investors are concerned and prefer to hold cash. If many more follow this it becomes a dominant trend.
Smart investors pay lots of attention to dominant trends. They even only pay attention to dominant trends. What makes them different is that they spot a dominant trend early on by reading markets correctly.
Why is reading markets so difficult to many investors? Because they stick to the news. However, once everyone is brainwashed by a specific news item it mostly indicates the trend has changed. Only by focusing on charts, and reading markets in that way, are investors able to understand trend changes in dominant trends.
Note by reading markets correctly we can do accurate forecasts for commodities & gold as well as the crypto & blockchain market. Essentially, it allows us to forecast in all markets & stocks. Keep a close eye on our 2019 forecasts.