Given below are the components for analyzing a stock. These are likely to be inherent of any comprehensive investing/trading strategy.
Stock Analysis may include these components:
- From the chart: trend and momentum from price indexes, breadth, volume, relative strength, sentiment & supply/demand patterns/indicators.
- Sentiment of traders: options data, put/call ratios, put/call ratios on volume, put/call ratios on premiums; Consensus, Inc. polls, Investor’s Intelligence polls (traders make tops).
- Sentiment of Investors: corporate buy backs, new equity financing, results which impact price valuation (investors make bottoms).
- State of the Market: Performance of the stock relative to it’s peer group; performance of stock’s sector relative to overall market
- Intermarket Analysis: Relationship of the commodity with its pairs, like airlines and crude prices, Goldcorp Inc. and USD.