How to Combine the Power of Fundamental With Technical Analysis to Pick Winners
Historically, shifts in the CBOE Volatility Index positioning have consistently coincided with stress level peaks, triggering counter-directional movements in the stock market.
However, a noticeable shift is occurring now, as the latest data reveals a move towards long positions for the first time since the outset of 2019.
In fact, long positions are now surpassing their levels at the beginning of the year. If this trend continues, long positions may eventually outweigh the short ones in the coming months.
On the other hand, a plethora of macroeconomic headwinds, such as higher rates, lingering inflation, and dwindling earnings growth, keep on sending risk-off messages to investors.
So, is it time to go bullish or bearish on the S&P 500?
Well, we don't know for sure. However, what we do know is that having the answer to this question shouldn't be as crucial as being allocated to the right companies in the long run.
While timing the market is a fool's errand, time in the market can be a powerful ally — even more so when you find the right companies to go long on.
This is why conducting comprehensive fundamental and technical analyses plays a pivotal role in shaping investment decisions and mitigating undesirable outcomes.
When it comes to fundamental analysis, InvestingPro is the top tool available for retail investors. It provides retail investors with access to the same data that the world's largest investment banks and money managers rely on.
To leverage this data even further, investors can combine the power of InvestingPro with technical analysis, gaining a significant edge over the competition. Over the next section, I will use the example of Apple's (NASDAQ:AAPL) stock to show you how to do that.
We will begin by
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