Why You Need Fundamental and Technical Analysis

Relying solely on one type of analysis is often the downfall of some traders and investors. [Jeff Clark's Market Minute]( Why You Need Fundamental and Technical Analysis By Imre Gams, Analyst, Market Minute Happy New Year, traders. We’ve officially closed the books on the previous year. And what a year it’s been… The Fed finally announced its long-awaited pivot… signaling that rate cuts are finally coming in 2024. This is the “green light” that many investors and traders have been waiting for. But if you’ve been waiting for the Fed to finally show its hand, you would have missed out on an epic melt-up in the markets. Stocks bottomed in October 2022. And although there have been pullbacks along the way, the broader market indexes have performed admirably. The Dow Jones Industrial Average (DJIA) broke 37,000 for the first time ever on December 13. The Nasdaq broke to a new all-time high on December 19. And the S&P 500 is currently about 2% away from reaching a new all-time high. The point we’re trying to make in this essay is that there’s often a difference between what the markets should do and what they actually end up doing. This difference often leads to the downfall of traders and investors who rely on fundamental analysis. Don’t get me wrong ­– fundamental analysis is incredibly important… just not in the way most people think. Let’s say you know beyond any doubt that a company is going to beat earnings. But what do you do with that information? What kind of action are you going to take? Recommended Link [Google’s billionaire founders are back (here’s how to profit)]( [image]( They founded Google, making history and making early investors insanely rich. And now, after retiring three years ago... Google’s billionaire founders Larry Page and Sergey Brin are back. And their return marks the beginning of a new era for Google that could make you rich. You see, they’ve returned to launch Google’s biggest artificial intelligence project yet. And one Google millionaire has found a way for you to profit from this new AI project right from your brokerage account. [Click here for the full story.]( -- After all, there isn’t a clear connection between an earnings report and how the stock is going to perform. We’ve all seen stocks trade lower after a seemingly glowing earnings report. And on the other hand, we’ve also seen stocks trade higher after a lackluster earnings report. How about another example? What if you knew the economy was going to stay strong over the next several years? Surely, you could use that information to buy stocks and make a fortune. Not so fast… The stock market and the economy generally move in the same direction, that’s true. But stocks often lead the direction of the economy. This means there can sometimes be a significant distortion between how the markets are doing and how the economy is performing. For instance, if you knew the first three months of 2024 would represent the strongest increase in GDP for the next few years, you’d probably think now is a good time to buy stocks. That was the case for the last quarter of 1987. And if you owned stocks in late 1987, you would have owned them through what remains to this day one of the worst market crashes of all time. The truth is that fundamental analysis is great at telling us when and where to look. If Tesla is reporting earnings in a week, we know that’s a stock we might want to keep an eye on. And the first Friday of the month usually marks the release of a slew of reports that tell us how the job market is doing. Events like Fed meetings and employment reports are all marked on economic calendars. There’s a whole bunch of them out there. The one I prefer to use can be found at the [Forex Factory](. But as we just covered, knowing about these events – or even the outcome of them ahead of time – isn’t enough. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. That’s because fundamental analysis does a terrible job of telling us what to actually do. Fundamental analysis can’t tell us where to place a protective stop loss or where to set a realistic profit target. Only technical analysis can help us with that. That’s why whenever we talk about the markets here at Jeff Clark Trader, we usually incorporate a price chart. Technical analysis is the study of those charts, and it happens to be both an art and a science. There isn’t one right way to look at the technicals of a market. Everyone has their own slightly different way of doing it. On Wednesday, I’ll show you my way of doing it. It’s not all that complicated. Anyone can learn it with a bit of time and dedication. And most importantly, [my method consistently delivers results.]( And we won’t just be looking at historical examples from years ago, either. We’re going to look at markets that are relevant to you right here, right now. Until then, happy trading. [Signature] Imre Gams Analyst, Market Minute IN CASE YOU MISSED IT… [Trade this one stock to make money in any market]( What if you could ignore 99% of the entire stock market… and still have the chance to make money in bullish AND bearish conditions? Sadly, most folks don’t even see triple-digit returns in a single year – or even in 10-years… But today, millionaire trader and former professional money manager Jeff Clark, is revealing his trading breakthrough… He’s used this secret to help 170,000 regular folks have the chance to see triple-digit gains over 48 times and double-digit gains over 81 different times. The key: Don’t over-complicate things. [Watch Jeff Demonstrate His ONE Stock Trade Now.]( [image]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](