GLOBAL, INTERMARKET ANALYSIS NEEDED FOR 21ST CENTURY TRADERS & INVESTORS

NEW YORK, January 25, 2001 – Fractious, volatile global equity, capital and derivatives markets will dominate the first years of the 21st century and will require a new intermarket approach for traders and investors.

That’s the big picture from leading technical market analyst Louis Mendelsohn, writing in his just–released book, Trend Forecasting with Technical Analysis: Unleashing the Hidden Power of Intermarket Analysis to Beat the Market (Marketplace Books, 2000).

"Intermarket analysis empowers traders to make more effective trading decisions based on the linkages between related financial markets," says Mr. Mendelsohn. "By incorporating intermarket analysis into your trading strategies, rather than limiting your scope of analysis to individual markets, these relationships and interconnections between markets will work for you rather than against you."

Mendelsohn’s new book examines how independent global events impact everyday trading decisions and how traders and investors can use intermarket analysis and high-tech neural networks to understand and profit in this environment.

"Today’s traders can no longer rely on single market analysis methods, which were designed for more independent, less volatile market conditions," Mendelsohn says.

"Asian market fluctuations, obscure currency devaluations, fluctuating oil prices and many other diverse and seemingly distant factors impact everyday trading decisions right here," says Mendelsohn. "Seeing the patterns and trends in today’s interconnected markets is vital for today’s successful trader and investor."

New Tools for New Markets

"One of Mendelsohn’s greatest contributions to intermarket analysis has been his application of neural networks to the process," writes John Murphy, leading author and expert on technical analysis, in the new book’s Foreword.

Trend Forecasting with Technical Analysis provides a primer on neural networks, which are computer applications designed to process enormous amounts of information and perform pattern recognition and forecasting. Neural networks sift through seemingly unrelated market data to find repetitive patterns that could never be perceived visually or by comparing two markets to one another.

Moving Averages as Forecasting Tool

Mendelsohn, for example, describes how he uses neural networks to turn moving averages – one of the most widely used technical analysis tools -- into a powerful market forecasting tool.

"I have successfully applied neural networks to intermarket data in order to forecast moving averages, turning them in a leading indicator that pinpoints expected changes in market trend direction with nearly 80% accuracy," he says. "This is in sharp contrast to using moving averages as a lagging indicator, as most traders still do."

The new book highlights Mendelsohn’s development and application of his proprietary VantagePoint Intermarket Analysis Software, which forecasts price trends based on the pattern recognition capabilities of neural networks applied to intermarket data.

Trend Forecasting with Technical Analysis: Unleashing the Hidden Power of Intermarket Analysis to Beat the Market, published by Marketplace Books, is available in January, 2001 with a suggested retail price of $19.95. It can be ordered online at www.ProfitTaker.com.

Louis B. Mendelsohn is a pioneer in global, intermarket technical analysis and is Founder, President and Chief Executive Officer of Florida-based Market Technologies (www.ProfitTaker.com), a leading investment software development firm.

Born in 1948 in Providence, Rhode Island, Mr. Mendelsohn received a B.S. degree in Administration and Management Science from Carnegie Mellon University in 1969, an M.S.W. degree from the State University of New York at Buffalo in 1973, and an M.B.A. degree with Honors from Boston University in 1977.

 

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