Chapter X: The mood of the market toward Archer-Daniels-Midland show up in the Daily Closing Altitude and other Sentiment Indicators. |
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| Negative Volume Index (NVI) is a traditional Sentiment Indicator for Archer-Daniels-Midland. Here the Indicator Plot is the Calibrated NVI which incorporates several enhancements suggested by Norman Fosback. The plot is the proportion of the daily NVI as compared to the past year's average daily NVI. The plot is orange below the unity line (neutral implication) and green above (bullish). |
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How to read the Calibrated NVI for Archer-Daniels-Midland: The NVI is an elegant indicator based on sound principles but it should not be interpreted in a simplistic manner. The orange plot (NVI less than unity) is not considered bearish because a lowering of the NVI is a natural tendancy under many market conditions. When the plot is in the green area, it indicates that prices are rising on low volume sessions, which is contrary to the normal condition. This can be a tip off to "accumulation behaviour" on the part of someone or some group in the market. The indicator seems most significant when prices are falling and the NVI is rising, which indicates a market that is "buying on the dips". |
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| Because the NVI operates over a somewhat longer time frame than most technical indicators, it is of interest to track it over a longer period to get a feeling for how it works. This chart for Archer-Daniels-Midland covers the few years before the start of the chart at the top of the page. |
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| For the trading week ending 12/3/2010, the weekly average closing altitude was 75.23 percent. The historical Closing Altitude is traced by the blue line in the chart above. 50 percent closing altitude is marked as the midline. It indicates closing prices halfway between the high and low prices for the day. Values above the midline indicate that day traders have positive feelings toward ADM while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. The short-term trend is positive, with a slope of 65.38. Archer-Daniels-Midland stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.75. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Archer-Daniels-Midland share prices are overlaid in red. This is an important indicator for market timing, as a change in direction of the volume line may happen before the price turns.The last tic shows an uptrend in the volume portion of 0.01. |
Influence of Investor Sentiment on ADM stock prices. Also, roadmap and Summary of most effective indicators: |
| In the news, Friday, February 18, 2011: An unfavorable condition has developed with Aetna Inc., ticker symbol AET. Also, there are breaking events concerning Dollar Tree, Inc. (DLTR) and First Niagara Financial Group Inc. (FNFG) |