Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Chapter 1
TRADING IN THE GLOBAL ECONOMY— Have Your
Trading Strategies and Profits Kept Pace? . . . . . . . . . . . . . . . . . . 25
The Markets Are Constantly Evolving . . . . . . . . . . . . . . . . . . . 26
The World’s Futures and Equity Markets Are Linked . . . . . . . . 27
Emerging Forces Usher in the New Global Economy . . . . . . . . 29
Market Volatility and Financial Crises Are Here to Stay . . . . . . . 31
Chapter 2
SINGLE-MARKET ANALYSIS—Trading With Tunnel Vision
Can Put You on the Losing Side of a Trade . . . . . . . . . . . . . . . . 35
While Numbers Don’t Lie, They Can Be Deceiving . . . . . . . . . 36
The Goal Is to Forecast Market Trend Direction . . . . . . . . . . . 36
You Can Play the Markets, or You Can Time the Markets . . . . . 37
Technical Analysis Has Not Kept Pace With the Markets. . . . . . 38
Traders Need to Take Off Their Blinders. . . . . . . . . . . . . . . . . 41
Chapter 3
INTERMARKET ANALYSIS—Seizing Trading Opportunities in a
Shrinking World . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Intermarket Analysis in the Equity and Commodity Markets . . . 46
No Market Is Exempt From Globalization . . . . . . . . . . . . . . . 49

Why Markets Converge or Diverge . . . . . . . . . . . . . . . . . . . . 50
Intermarket Dynamics Must Be Taken Into Consideration . . . . 51
Early Attempts at Intermarket Analysis Fall Short . . . . . . . . . . 51
Tracking Related Markets Pays Off . . . . . . . . . . . . . . . . . . . . 52
Full Field of Vision Is Critical . . . . . . . . . . . . . . . . . . . . . . . . 53
Intermarket Analysis: In the Right Place at the Right Time. . . . 56
The Only Thing Certain Is Uncertainty Itself . . . . . . . . . . . . . 57
Chapter 4
TODAY’S MARKETS HAVE CHANGED—Why Trend Forecasting
Beats Trend Following and How Traders Can Profit. . . . . . . . . . 59
Moving Averages Are Lagging Indicators . . . . . . . . . . . . . . . . . 60
Moving Averages Are Popular—But Something’s Missing. . . . . 62
Moving Average Crossovers Lead to Whipsaws . . . . . . . . . . . . 63
Computing a Simple Moving Average Is Easy . . . . . . . . . . . . . 65
Displaced Moving Averages: Close But “No Cigar” . . . . . . . . . . 66
A New Way to Forecast Moving Averages . . . . . . . . . . . . . . . . 66
Leading Indicators Give You a Competitive Edge. . . . . . . . . . . 69
Chapter 5
VANTAGEPOINT FORECASTS MARKET DIRECTION—
How to Get a Sneak Preview of Where the Markets Are
Going and Use This Information to Your Advantage . . . . . . . . . 71
VantagePoint Monitors Major Financial Markets . . . . . . . . . . . . 71
Five Neural Networks Make Independent Forecasts . . . . . . . . . 73
What VantagePoint’s Daily Report Tells You . . . . . . . . . . . . . . 76
Intermarket Charts Show You What’s Ahead . . . . . . . . . . . . . 80
VantagePoint Is Quick and Easy . . . . . . . . . . . . . . . . . . . . . . 82
How to Find a Good Trade . . . . . . . . . . . . . . . . . . . . . . . . . 83
Here’s How to Get Added Confirmation . . . . . . . . . . . . . . . . 84
Day and Position Trading With Tomorrow’s Price Forecasts . . . 88
Stop Placement Based on Forecasts Not Hunches. . . . . . . . . . 89
Other Markets Give Added Confirmation . . . . . . . . . . . . . . . . 90
How To “Cherry-Pick” the Best Trades to Take. . . . . . . . . . . . 91

Chapter 6
NEURAL NETWORKS—How to Raise Your Financial IQ
to Stay Ahead of the Competition . . . . . . . . . . . . . . . . . . . . . . . 93
Neural Networks Combine Technical and Intermarket Data . . . 94
Neural Networks Learn Patterns and Make Forecasts . . . . . . . . 95
Chapter 7
THE NEXT HORIZON—Where Do We Go From Here
and What Does This Mean for Traders? . . . . . . . . . . . . . . . . . . 99
There Will Never Be a Financial Crystal Ball . . . . . . . . . . . . . 101
Trading Resource Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
About the Author and Market Technologies Corporation . . . . . . . . 115