The Market Fundamentals Instrument

Keeping track of fundamental data that updates when companies release earnings can be a daunting task. At the height of earnings season, over 100 important companies update investors on the most recent quarterly performance and outlook every week.

We aggregate this data on a weekly basis and update the Market Fundamentals Instrument in order to keep track of key metrics:

• Gross and Net Margins

• Revenue Growth

• Inventory Turnover

• EPS

• The overall P/E Ratio

Although fundamental data is generally NOT forward looking in nature, by being aware of what companies are reporting in such a standardized fashion will keep us informed on the current cycle’s progression. This is just another tool that aids positioning on a discretionary basis, providing a fundamental backdrop to our technical indicators.