SFO - Technofundamental analysis

Discussion in 'Wall St. News' started by 2manywhiners, Nov 17, 2005.

  1. Anyone reading SFO - "Stocks, Futures, Options"

    November 2005 issue has an article called "The Technofundamental Revolution"

    It touches on combining Fundamental analysis with Technical analysis, and I found the article to be very interesting. Being a purely "technical" newcomer, I had learned a while back that in today's market, a short-term trader has no use for Fundamental analyses. Well I must have took that to heart very easily, because I never gave fundamental analysis another thought. At least until I read this.

    If anyone out there is trading and making decisions based purely on numbers, try screening your current stock list with fundamental analysis introduced to the mix. I found I've been trading [short term] some securities that long-term traders & investors wouldn't touch with a 10 foot pole. I always chose which stocks to trade based on Technicals only [example: last month's avg.price, avg. daily volume, current price, etc] . Just by cutting out poor long-term performers from my stock list, I've already seen an increase in my trading performance [it was likely due only to cutting out the stocks that had been hurting me more than any of the others] I'm currently exploring other ways to incorporate fundamentals into my trading arsenal.

    Anyone with suggestions of how to expand technical analysis into a hybrid with fundamental, please post. I'm sure I'm not the only "numbers" guy who is intrigued by fundamentals. Thanks.
     
  2. Didn't read the article but I use technicals to pick up price action from fundamental information not yet in the public domain but being acted on. If you are an analyst in other markets company releases/filings are virtually your sole source of useable information. The press releases come out at distribution time. Silence during accumulation. Look at price action in other sectors and markets as well for clues.
     
  3. one thread is enough please.