Futures Marketing Section III Fundamental versus Technical Analysis

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Futures MarketingSection III Fundamental
versus Technical Analysis
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Fundament versus Technical Analysis

• Fundamental Analysis Deals with economic
  forces, government policies, weather, and other
  factors which determine the market price.

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Fundamentalist Concerned With

• Supply and Demand Conditions
• Carry-Over Stocks
• Production Estimates relative to last forecast or
  past averages
• Supply and Demand of competing products
• Current Prices relative to past prices
• Seasonal Price Relationships
• Political Actions

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Technical Analysts are concerned with market
prices
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Technical Analysis deals with information that
is generated by the market
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Charts are the tools of the technical analyst

• Daily High-Low bar chart
• Point and Figure Chart
• Moving Average Closing Price

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BASIS
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BASIS
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Why?
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CASH AND FUTURES PRICES
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Insurance
Interest
Storage
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Normal Market
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Inverted Market
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New Crop Inversion
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