For example, today, the Dow went down "25 points after the Commerce Dept 2Q05 report on the GDP. Because it was a weaker than expected report, I anticipated that bonds would sell down, gold improve, and that selected equities like the financials (JPM, C, AXP and to an extent GE because GE Capital produces about half GE profits) would be down relatively more than the Dow 30 index of which they represent the financial industry components.

That reaction, by the way, is a short-term one that is not based on the economic data, but on traders reactions as to how they think the U.S. Fed will react to it. You see, like driving quickly down a crowded highway, you can't focus on the car immediately ahead, but on the ones ahead of that. You are always trying to anticipate.

This is for the short-term traders. Ultimately, it is the big money of the long-term traders that moves capital markets, which requires different tools to assess.

Here is the graphic of the Dow 30 trading monitor.

You can see that JPM, C, AXP, and GE are down. So too is AIG, but with the internal and regulatory situation ongoing there, I stay away from trying to figure out that one.

Gold is also up.

So the universe is unfolding as it should. At least for now.

My point here is that after months and years of applying this simple tool, you too will start to see the interrelationships in capital markets at work. These markets do not operate randomly, but as people (like me and you) direct them through our trading orders.