Time the Markets: Using Technical Analysis to Interpret Economic Data
by II Charles D. Kirkpatrick
5. Corporate Indicators
The five indicator categories used in this book to time the stock market over the business cycle are corporate, economic, monetary, sentiment, and market. In this chapter, I look for the best method of using corporate data. By corporate data, I mean things like aggregate corporate profits and dividends.
Investment thinking has long assumed that corporate earnings and dividends are the principle driving forces behind stock prices. These tests confirm that thesis. Two out of four configurations produced a moving average crossover system that tested favorably. By using the technical method of filtered, moving average crossovers and adequate protective and trailing stops, corporate data has the capability to time the market. ...
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