Published: Fri, May 11, 2018
Finance | By Claude Patterson

Taking Aim at S&P Smallcap Growth ETF SPDR (SLYG) Shares

Moving averages can help identify trends and price reversals.

When it comes to equity investing, being too confident may be just as detrimental as not being confident enough. There are many different schools of thought when it comes to stock trading. This may be the case, but sometimes it might be good fortune. The principle of trading using this indicator is easy. Finding that flawless balance between the needed gusto and the correct amount of caution may help ease the burden moving forward in the equity market.

Traders may be relying in part on technical stock analysis.

The ETF is -8.43% of its 52-Week High and 21.31% of its low, and is now having ATR of 1.42. The ATR basically measures the volatility of a stock on a day-to-day basis. ADX calculations are made based on the moving average price range expansion over a specified amount of time. Interm Muni Bond Strgy ETF Pimco (MUNI) now has a 14-day Commodity Channel Index (CCI) of 8.28. A value of 25-50 would support a strong trend. A value of 25-50 would indicate a strong trend. Tushar Chanda developed the Aroon Indicator in 1995 to help traders determine the strength of a trend and whether pricing behavior was favoring a trend or sideways action. The ADX is typically used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) which point to the direction of the trend. The 14-day RSI is now spotted at 51.16, the 7-day is at 54.28, and the 3-day is sitting at 59.38. The RSI value will always move between 0 and 100.

A commonly used tool among technical stock analysts is the moving average.

Investors may be studying other technical indicators like the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. If we look back over the last half-year, we can see that the stock has moved 7.44%. S&P Midcap 400 SPDR (MDY)'s Williams %R presently stands at -42.4. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. A reading between 0 and -20 would indicate an overbought situation. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory. The 14-day ADX presently sits at 14.69. The CCI was created to typically stay within the reading of -100 to +100. Normal oscillations tend to stay in the range of -100 to +100. The RSI is considered to be an internal strength indicator, not to be confused with relative strength which is compared to other stocks and indices.

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