Most of you are probably looking at stocks and thinking about moving averages, technical analysis, and probably running some scanner application to find the latest and greatest stock to invest in. Maybe some of you will use fundamental analysis to figure out what the cash flow or earnings per share is. Regardless of what kind of investor you are you will use some kind of indicator.
In the technical analysis or fundamental analysis world there are literally oodles and oodles of indicators. Yet if you thought about it the indicators digest the same data over and over again in different manners.
I’ll discuss why traditional technical indicators and fundamentals can be misleading. Then I’ll give you two macro-economic indicators I’ve been using lately: In-house software, and Remanufacturing.