Keeping on top of the stock market can be a challenging task. There's so much information out there, and its constantly changing. It can be a challenge to just to get your head around it let alone make sensible trading decisions.
One of the tools I use to tackle this mountain of data is TeleChart 2000 abbreviated TC2000. I've been a customer of the Worden Brothers for more than 20 years and their products continue to improve and deliver more bang for the buck.
Recently, the Worden's delivered TC2000 v12.4.5. This version contains a raft of improvements, and I want to touch on one item here which is the ability to plot fundamentals on price charts. This capability was present previously only with an additional data package, but its now provided in the core TC2000 Gold Service which costs about $299 per year which includes unlimited access to the price database including unlimited real-time streaming charts and market scanning.
The thing about fundamentals is that they don't change nearly as often as price. Most financial data is delivered only once per quarter or only 4 times per year. Once piece of fundamental data which does change daily is the short interest ratio - that is the number of days of typical trading volume it would take to cover all short positions. In the chart above, we can see that Short Interest in TSLA is trending higher, but it is a relatively low level compared to historical values. Note that tops in Short Interest would seem to precede tops in price. To come to a different conclusion, the level of short interest in TSLA is at relatively low levels compared to historical levels.
Another one that I find interesting a plot of net earnings. This figure is reported quarter and its very easy to get a long term view by plotting this on a monthly chart. Take a look at this chart of Synaptics (SYNA) with the net earnings plotted in red at the bottom of the chart. Are earnings keeping pace with the rising stock price? You bet they are. I took a new position in this company this week in both my TradeStation and E*Trade accounts and I expect higher prices ahead.Using these charts, its very easy to get a long-term look at the earnings growth trends for all of the companies in your portfolio. I was able to get a look at this information for all 82 stocks in my portfolio in less than 10 minutes. And from that brief exercise, I call tell you that stock prices are absolutely correlated with net earnings.
Take a look at these graphs for your favorite stocks and use this information to your advantage. Have a great and profitable week ahead.
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