... Bond Futures2 26 INTERMARKET ANALYSIS AND THE BUSINESS CYCLESome understanding of the business cycle (together with intermarket analysis ofbonds, stocks, and commodities) impacts on the asset allocation ... as their commodityproxy, I'll show where the yellow metal fits into the picture. Because the bond marketplays a key role in the business cycle and the the intermarket rotation process, the bond ... line, the economy has slipped into recession. The arrows represent the direction of the three financial markets-B for bonds, S for stocks, and C for commodities. The diagram shows that as the expansion...