fundamental analysis + technical analysis = prosper

I attended a technical analysis seminar yesterday. I have never used TA in my stock purchase but i think it is not bad to learn another method. According to the speaker, FA + TA = FATA , which means prosper in mandarin. Anyhow, throughout the seminar, i begin to grasp some knowledge about what TA is. It is pretty much like trying to model how a stock price will go, based on a sample of historical data. It is very much statistic in nature, which i use quite a lot in my work. However, i'm still comfortable with my current fundamental method. Dow Jones support line is around 10538 and resistant 10800. A key knowledge about TA is that if the point drop below support, it may highly likely trend down further. Likewise, it is gonna up if it breaks resistant. So, it will be interesting to see what happens tomorrow after that the US market reopen. With and analysis based on other indicators such as MACD, RSI, it seems there is a bearish divergence. This simply means there is high chances for market correction. One 'fundamental' check would be the claim rate for FDIC (the equivalent of PIDM in Malaysia) that protect savings account of user with US banks. So far, US banks continue to fail (133 banks for 2009, and already 3 banks for 2010). Another key indicator used in TA is volume. Lately, we see increase in trading volume but stock indices is not going much higher, suggesting there is equal number of buy/sell order.

One speaker brings out an interesting question, how do we start select the stocks we want? do we look at the most actively traded counters everyday? For technical analysis approach, the chartnexus (the organizer of the seminar) enables user to set criteria (based on patterns or info such as support, resistance) to filter down to the share they want. For fundamental analysis approach, that reminded me that i actually started getting many of the stocks in my current portfolio by referring to dynaquest stock market data book. Here is the website www.dynaquest.com.my. It provides a rating system based on fundamental data which helps to filter down to the company we wish to invest.