Today, I would like to write on technical vs fundamental analysis.
From ChatGPT:
• Fundamental analysis is a method used to evaluate the intrinsic value of a financial asset, typically a stock, by examining related economic, financial, and qualitative factors. The goal is to determine whether an asset is overvalued, undervalued, or fairly valued based on its underlying financial health and future prospects.
• Technical analysis is a methodology used to evaluate and predict the future price movements of financial assets—such as stocks, currencies, or commodities—by studying historical price patterns, trading volume, and other market statistics. Unlike fundamental analysis, which focuses on a company’s financial health and intrinsic value, technical analysis emphasizes market psychology and trends.
30+ years ago, I concluded trying to figure fundamentals and what it means to price movement is difficult at best. The problem is if the market is moving against a fundamental you believe is true, it drives you nuts. But technically, I can look at at few things and come up with a road map for what you might want to do.
Technically, corn today is beginning to look like a flip of a coin. One technical indicator is the 5 day 20 day moving average. The 5 day MA today is 4.09, the 20 day MA is 3.99 with the market at 4.06. So what will we see first. A break of the 5 day and 4.10 say? Or a break below the 20 day at 3.98. Technical vs Fundamental Analysis: Stay tuned. Time will tell.
Looking for a way to build some price protection should bad news hit? Give me a call at 320-761-0406 or email [email protected].
Thanks for reading