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-- Ron wrote:
> Imo, probably a better way to explain the position
> that you were defending is:
>
> "Such correlations and relationships may exist -- if
> they do, I don't know what they are, nor do I have
> any interest in pursuing them -- and (in my opinion
> probably only a few rocket-scientist types could
> explain them"
This is not my position. My position is: "Causal relationships - of the sort presumed by 'intermarket analysis' - do not exist. They are constructions of imaginations based on correlations of unrelated things."
Please note: I am not suggesting that one base one's trading on causal relationships, or that one seek to use causal reasoning. I am suggesting that *intermarket analysis* postulates causal relationships but does not prove that they exist. And indeed, I go further and suggest that the causal relationships *suggested by intermarket analysts* cannot exist in freely traded markets.
So let it be clear that I am not the one suggesting the use of causal reasoning. Intermarket analysis suggests that x causes y. I am simply pointing out that while x may correlate significantly with y, that is no proof of the *causation* that is sought by *intermarket analysts*.
Good trading,
OM
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