Trading News Events and Fundamental Analysis -  We asked 7 successful traders what reports they rely on most. Here's what they said...

Trading News Events and Fundamental Analysis - We asked 7 successful traders what reports they rely on most. Here's what they said...

19 September 2014, 15:11
EmmeMe
0
251
Carl Larry
In crude oil, I follow the Energy Information Administration. They come out every week and detail all of the data submitted by oil producers. Similar to the BLS Unemployment numbers, there’s a lot of week’s where there’s something amiss and we can expect an adjustment by the end of the month. Then again it’s like they always say, “Close enough for Government work.”


Carl Larry is the president of Oil Outlooks and Opinions LLC.

Rich Ilczyszyn
It is true that the granddaddy of them all is the Nonfarm Payroll Report that comes out the first of each month. This report is an estimate or "phone survey" from a survey of about 400,000 business establishments that account for about one-third of all jobs in the country. Though great emphasis is place on this report, because it is a "phone survey" there is room for error and its the revisions from previous months could trump current reads.
 

Along with the release of Nonfarm Payroll is Wage Growth data which has slowly taken more merit than in the past and has been a focus of Janet Yellen’s more recently. We at iiTRADER have always followed both ISM Manufacturing (survey of 300 manufacturing firms and monitors employment, production inventories, new orders and supplier deliveries) and ISM Non-Manufacturing data (surveys 400 non-manufacturing firms' purchasing and supply executives, within 60 sectors across the nation). This ISM data can help indicate sustainable growth and better than expected data should have a positive effect on the stock market.

Rich Ilczyszyn is Founder and Chief Market Strategist of iiTRADER.com

John Caiazzo
I don't use fundamental research but always looking at traders reaction to the data.


John Caiazzo has over 40 years of experience at brokerage firms across the United States.


Kara Boniecka

Copious research has been done to try to determine which numbers have real predictive value for future equity market values. You wouldn’t necessarily know which numbers merit careful consideration from the coverage in the financial media because they must report on every number. Many macroeconomic factors may have only limited relevance for you as a trader. 

As with so many things in life, the 80/20 rule applies. In this time of information overload, it’s helpful to focus on the most meaningful factors so you can be nimble in your response to changing market currents.

Kara Boniecka is the founder of LakeshoreATS and the author of Avoiding Bear Traps: Easy Macro Factors for Smart Traders, which provides concise guidelines for deciphering economic news and navigating market corrections of all sizes.

Matt Weller
It’s easy to get lost in the cacophony of global fundamental reports that are released on a monthly basis, so it’s important for traders to identify what data points the market is focusing on at any given time. While jobs and economic activity have been strengthening for years, the fundamental laggard in the post-GFC recovery has been inflation.

Therefore, I am most focused on central banks’ preferred measures of inflation. For U.S. traders, this means keeping an eye on the Fed’s preferred Core Personal Consumption Expenditures (PCE) readings, rather than the more widely-followed Consumer Price Index (CPI) readings. Likewise, European traders should keep an eye on the Harmonized Index of Consumer Prices (HICP), the ECB’s favorite measure of prices.

Matt Weller is the Senior Technical Analyst for FOREX.com

Dan Gramza
Before we begin looking at specific reports, it is important to keep in mind that different reports will have different influences depending on where the market is in its development cycle. For example, is the market turning from a down move as in March 2009, or at all time highs in 2014?

It is also important to keep in a global context how this report compares to other economic and geopolitical news occurring in other parts of the world. This is why there may be a very bullish report in the United States, but the market trades lower because other events or reports have occurred in other parts of the world and has dampened the impact of the U.S. report.

Dan Gramza is President of Gramza Capital Management Inc. and DMG Advisors, LLC.

Matt McKinney
For me two of the most important reports that I can follow that are specific to one sector, the energies, is the API report or the American Petroleum Institute report that comes out at 3:30 p.m. central on Tuesday afternoon and the EIA report or Energy Information Agency report that comes out on Wednesday mornings at 9:30 a.m. central.

These reports show us where we stand as far as supplies from week to week in crude oil, unleaded gasoline, and distillates (diesel, jet fuel, and heating oil). These reports will also let us know how the refineries are operating and at what capacity. Please understand that this afore mention information isn't all that these reports disclose, but that's all I really care about.

Finally, for me it's the Fed. Once a month the Fed let's us know what the interest rates are going to do and nowadays how much QE will be coming off the table. This report effects many markets I believe like the indices, the financials, the currencies, and the precious metals.
 

Matt McKinney is a full-service options broker at Zaner Group both buying and selling energies, metals, grains, softs, currencies and the 30-year bond market.


Share it with friends: