What is Stock Analysis?

Stock Analysis should include these components:

1. From the chart: trend and momentum from price indexes, breadth, volume, relative strength, sentiment & supply/demand patterns/indicators.

2. Perception 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).

3. Perception of Investors: corporate buy backs, new equity financing, results which impact price valuation (investors make bottoms).

4. Intermarket Analysis. Relationship of the commodity with its pairs, like airlines and crude prices, Goldcorp Inc. and USD.

There goes a saying among tape readers, “Have a bigger picture in your mind… and forget it when you sit on your terminal”. The bigger picture refers to analysis.