In my limited years, compared to veterans in the market place, I have clearly seen a shift in the way economic data is perceived as a tool for determining trend. What used to be a mover on a daily basis, seems to have been superseded by determinations of what the FED Reserve will do to keep the market from collapsing. Seems the days are gone when good news moved the market up and vice versa. We have even gotten to the point of markets waiting to hear what Fed speakers have to say, in contrast to any official number to sway direction.
I would like to still think that most of the data still means something to paint a BIG PICTURE. This by no way changes any intra-day bias (which you should never have) or long term strategies. Yes, I too had a struggle for some time, frustrated with market direction when clearly it should have been going in the right direction!
There are a plethora of great websites where you can find economic data which becomes your “color palette” to draw from. While I remain steadfast that it should not become a bias of your trading/investing strategies, it’s nice to put together a picture so that the next time you are at the water cooler or investing meetup, when you overhear the conversation of how the market is flowing, you will have a leg to stand on and not merely your super powerful charged ETF charts. They may be an investment tool, but not a fool proof vehicle of momentum.
Momentum investing strategies using long term moving averages, sector ETF’s, treasury yield curves or even Investor Business Daily’s CAN SLIM all have to draw upon a core set of data. This of course includes solid company earnings which is reflected in the economic reports generated weekly and monthly.
In the long run, understanding the core data and limiting out of the hundreds of reports generated, you should come away with a full grasp so that you are not at the whim of CNBC or always asking, “so where do you think the market is going?”
By no means to re-invent the wheel of information, I share with you my select trim down findings as a resource to draw from.
Weekly Economic Pulse/Market Momentum Blog