Applying Trend and Technical Tools to NFP

Saturday, September 15, 2007 | 09:33 AM

Fascinating set of charts via Martin Pring at Real Money, applying trend following and technical analysis to NFPs.

"Technicians assume that markets move in trends and that once a trend begins, it remains in force until enough indicators prove that it has reversed.

Trends, of course, can range from intraday trends to secular trends extending over several decades. Obviously it's not possible to apply intraday analysis to economic data, because most of this information is published on a monthly basis.

To monitor these cycles in nonfarm payrolls, I decided to divide each monthly data point by a 12-month moving average. The great thing about a 12-month average is that it eliminates any seasonal biases. The result is the indicator plotted at the bottom of the first chart."

Here are 4 of Pring's charts on the issue. They are rather instructive.

091107_pring01

Larger chart:091107_pring01.gif

091107_pring02

Larger chart: 091107_pring02.gif


091107_pring03

Larger chart:  091107_pring03.gif


091107_pring04

Larger chart: 091107_pring04.gif

Very interesting approach . . .




Source:
Trading Nonfarm Payroll Charts
Martin Pring
RealMoney) 9/11/07
http://www.thestreet.com/p/rmoney/technicalanalysis/10378989.html

Saturday, September 15, 2007 | 09:33 AM | Permalink | Comments (7) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c52a953ef00e54ef305878834

Listed below are links to weblogs that reference Applying Trend and Technical Tools to NFP:

Comments

The economy continues to struggle. The Retail Sales y/y % change declined.
I have posted charts about Industrial Production approaching a critical level. I plotted it against Real Durable Goods Consumption, which leads IP at turning points.
See
www.wrahal.blogspot.com

Posted by: will rahal | Sep 15, 2007 9:47:23 AM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner