Chapter X: The mood of the market toward Bank of America Corporation show up in the Daily Closing Altitude and other Sentiment Indicators. |
| Prev. Co. | Next Co. | |
|
| ||
| Negative Volume Index (NVI) is a traditional Sentiment Indicator for Bank of America Corporation. 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). |
|
How to read the Calibrated NVI for Bank of America Corporation: In its modern form, the NVI is an elegant indicator, but requires some care in interpretation. 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". |
| Prev. Co. | Next Co. | |
| ||
| 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 Bank of America Corporation covers the few years before the start of the chart at the top of the page. |
| Prev. Co. | Next Co. | |
| ||
| The historical Closing Altitude is traced by the blue line above. For the trading week ending 3/5/2010, the weekly average closing altitude was 43.13 percent. 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 BAC 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 -32.84. Bank of America Corporation stock prices are shown in red. |
| Prev. Co. | Next Co. | |
| ||
| The most recent Volume Portion is positive at 1.00. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Bank of America Corporation 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 0.18. |
Influence of Investor Sentiment on BAC stock prices. Also, roadmap and Summary of most effective indicators: |
| Friday, March 12, 2010: We have news on ConAgra Foods, Inc., ticker symbol CAG. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Texas Instruments Incorporated and Convergys Corporation. From the News Archive: (3/11/2010 ) A favorable event happened at Amgen, Inc.. Meanwhile, bad news came from Coach, Inc., Fluor Corporation (NEW), and Automatic Data Processing. |