"There are no inter market relationships what so ever in 'any' market, all markets are a function of individual investment between those that invest. It is the flow of investment that create the trends, these trends are a function of sentiment thereby created from the last trends of change of investments, being finish or starting anew. "
Z , as you know I always read and enjoy your posts. Always trying to get a little extra out of you as I feel alot of "profitable energy" from you.
I will say this, however, as I trade these markets intra-day for quite some time now. Markets do move at times based on a "general" or "wider" market environment. Agreed, markets are a function of individual market participants within that particular market. However, because of the easy access to put on or liquidate a position (via electronic trading), we often see markets "all" move in the same direction over a certain time frame. True, it is usually short lived and the market will get back to its own "merits". But there is no denying the influence of funds and most of the times it is the unwinding of trades that leads to more widespread correlation at times. I see it happen and just for a quick example, I reference the Thanksgiving Friday action (11/27/09). While those lows were all temporary, we saw markets plunge lower, in sync, before rebounding and re-gaining some normalcy/individuality.
Lastly, your point on trends and how they are created is excellent and IMO, that is very important identifying when/if that is taking place.
Thanks again.
gt.