Chapter X: Technical Analysis discovers the range of moods of investors toward AMAT. |
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| For Applied Materials, the Negative Volume Index is a well known indicator for market sentiment. The modern version of the indicator has received several enhancements added by Norman Fosback. The indicator is the proportion of the daily NVI as compared to the average daily NVI over the past year. 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 Applied Materials: 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 Applied Materials covers the few years before the start of the chart at the top of the page. |
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| Weekly average closing altitude was 28.85 percent for the week ending 3/5/2010. Past values of the Closing Altitude indicator are marked by the blue line. The midline represents the 50 percent closing altitude. If the closing prices happened to be exactly halfway between the high and low, they would be plotted on this midline. Values above the midline indicate that day traders have positive feelings toward AMAT while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. The latest data indicates a downward trend, with a slope of -57.63. Applied Materials stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.53. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Applied Materials 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 AMAT stock prices. Also, roadmap and Summary of most effective indicators: |
| Friday, March 19, 2010: We have news on L-3 Communications Holdings, Inc., ticker symbol LLL. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Mylan Inc. and TECO Energy, Inc.. From the News Archive: (3/18/2010 ) Bad news came from MicroSoft, General Electric, Sempra Energy, and Walmart. |