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why no fundamental analysis rank available in Stockcharts.com for trading purposes?
When I run my momentum scans for stocks they generated stocks with great looking charts, high SCTR, high relative strength etc. However I have started to check the scan results against the Fidelity Stock Screener equity summary score from Thompson Reuters Starmine which gives an aggregate fundamental analysis rating of bullish, neutral, or bearish based on the sum of opinions of about 10 analyst firms rating on a stock.
Interestingly enough a significant number of the stocks generated by my momentum scans have bearish Starmine ratings. This brings up the question of when you are trading is it sufficient to only rely on technical analysis scans for generating trades. Why ignore the other half of the equation- fundamental analysis?
I now check every trade of any type(momentum,pullback,breakout,etc) that my scans generate against the Thompson Reuters Starmine rating and only invest in stocks with a bullish or neutral rating and discard those with bearish ratings. I just don't feel comfortable investing in a stock with a bearish rating even though the charts and technical indicators look great.
Stockcharts.com as far as I can tell offers no ability to check out the ranking of a stock based on fundamental analysis. It would seem to me that as Gatis Roze says " you want the wind at your back when you are trading- strong sector,strong industry, strong stock" that you would also want to include "strong fundamentals". Is this a deficiency in the entire Stockcharts.com methodology?
I would estimate that most of the subscribers to Stockcharts.com are involved in trading and the Stockcharts advanced scan engine is a wonderful tool. But why not make it even better by adding some sort of fundamental analysis ranking ability to it? The only reason I can see for not doing this is if the people who run Stockcharts think fundamental analysis is completely worthless and the charts tell you everything. Is that the case? Is fundamental analysis completely worthless?
I have felt more secure in my trading now that I am using the Starmine fundamental analysis rankings to my trading criteria. I am interested in what other members of the stockcharts.com community think about this subject.