Friday, July 22, 2005

Fundamentals Quantified


If you were to simply chart using two criteria all the economic releases during weeks leading up to your current week you would possibly find an interesting chart on Fundamentals that relate to the market. (The two criteria would be if the number had been positive or negative and if it had exceeded or missed consensus expectations)

Additional charting could be done and often is done on individual economic releases such as unemployment claims or consumer confidence, etc. This would give you a possible edge in anticipating market direction or even using one chart to predict another thus having a more predictable environment on market moving events.

Those of you who have noticed leading indicators from one release towards another should comment in response.

I will put some charts together on this soon and post what I find if I find any helpful correlations.

One url which has some information is: http://www.market-harmonics.com/free-charts/sentiment/consumer_confidence.htm