Stocks & Commodities V. 25:1 (86-88): Product Review: Reuters PowerScreener 3.0 by David Penn
What exactly does fundamental analysis do for the
technical trader or investor? While many technicians see “the fundamentals” the way Atkins dieters see chocolate cake (tempting in the short term but ultimately worse than worthless), the fact remains that many traders and investors who rely on technical tools nonetheless include some analysis of information traditionally considered “fundamental.”
Sometimes this information is unabashedly
fundamental, such as price/earnings ratios and earnings per share analysis. Other times the technicians will find themselves at the margins of fundamental analysis, looking for clues in such behavior as institutional ownership or insider buying and selling. Moving closer to where the line between fundamental and technical analyses become blurred, many if not most technical traders and investors pay attention to factors like sentiment, contained in data
such as the put/call ratio, the volatility index (VIX), and Investor’s Intelligence surveys.