Given below are the components for analyzing a stock. These are likely to be inherent of any comprehensive investing/trading strategy.
Stock Analysis may include these components:
- From the chart: trend and momentum from price indexes, breadth, volume, relative strength, sentiment & supply/demand patterns/indicators.
- Sentiment of traders: options data, put/call ratios, put/call ratios on volume, put/call ratios on premiums; Consensus, Inc. polls, Investor’s Intelligence polls (traders make tops).
- Sentiment of Investors: corporate buy backs, new equity financing, results which impact price valuation (investors make bottoms).
- State of the Market: Performance of the stock relative to it’s peer group; performance of stock’s sector relative to overall market
- Intermarket Analysis: Relationship of the commodity with its pairs, like airlines and crude prices, Goldcorp Inc. and USD.
Update on 15/10/2010
{ 6 comments… read them below or add one }
Outstanding!
It is very brief though.
This Analysis Template is like wisdom. But I think people won’t be able to appreciate it because it is too brief.
Please provide us a detailed write-up
Understanding the market sentiment is the most important aspect of trading.
Not a bad post,in fact really fine.but I really miss that you didn’t express your opinion in detail, but its ok you just have different approach to writing.
will elaborate in next few days