Manufacturing performance in the S&P 500

摘要

Standardized fundamental indicators can be very useful in trading. An index that tracks manufacturing expectations can reliably forecast the stock market and even some commodities - if you know where to look.rnFundamental indicators can be useful trading tools. Those that are issued monthly and are relatively standardized in construction and application are the most appealing. We previously examined the relationship between home sales and lumber prices, and it was found that a reasonable correlation exists (see "Exploiting the homes sales/lumber link," March 2010). Based on that, we could use a linear regression equation to use home sales data to project the next monthly closing price of lumber with confidence.