Commodity Prices Always On The Move
Like stocks, commodity prices don't always go down or up. But the one thing you can practically guarantee about the commodities market is that somewhere prices are on the move. And predicting these prices is where fundamentals and technicals come in.
Technicals versus fundamentals, which is better? This is an ongoing argument among traders, but actually they're both necessary. I use both technicals and fundamentals, and I firmly believe it's vital to have a well-rounded knowledge of both in order to be a successful trader.
The trick is to know when to rely more on one or the other, or sometimes even neither, and just go with your intuition - your gut - sometimes, for some of us, this is the best indicator of all. Certain commodities, such as crude oil, tend to make use of the fundamentals; others, such as financials, rely more heavily on technicals.
Kevin Kerr
The Daily Reckoning Australia
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About the Author
Kevin Kerr's unparalleled expertise in futures and commodities has made him a regular contributor to news outlets like CNN fn, CNBC and CBS Marketwatch, where he's been quoted in over 500 articles. Now, as a contributing editor to Outstanding Investments, he uses his extensive knowledge and connections to uncover blockbuster natural resource investments.