Connected stocks show the way.

With the markets trading pretty choppy lately, one technique I use to help point the way and give me more weight to a probable direction is to look at what other "connected" stocks are doing. By connected I mean related in some way. When trading the bank and financial stocks I always look to see what gold stocks are doing. They are connected.

Earlier this morning the bank/financials were shooting up again but the market volume was weak. I took a look at AEM and ABX gold stocks. They were already on their way down so it was a good probability that the banks etc. were going to follow even though they were still going up.  Good profits are possible due to seeing these small signals 10 minutes before the other stocks follow and being prepared to take the correct action.

1st chart is S&P andd QQQQ before the move.

2nd chart is after/during  the move 

3rd chart is ABX shows downward move 10 minutes before bank stocks

AEM does the same

FAS before

FAS after/during

FAZ before

FAZ during/ after

SKF before the move

SKF during / after

SRS shows the same

SRS after the move