Chapter X: The mood of the market toward Cree, Inc. show up in the Daily Closing Altitude and other Sentiment Indicators. |
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| For Cree, Inc., the Negative Volume Index is a well known indicator for market sentiment. This version is includes 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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Interpreting the Calibrated NVI for Cree, Inc.: 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 Cree, Inc. covers the few years before the start of the chart at the top of the page. |
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| The historical Closing Altitude is traced by the blue line above. For the trading week ending 1/28/2011, the weekly average closing altitude was 38.94 percent. The midline represents the 50 percent closing altitude. 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 CREE 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 6.17. Cree, Inc. stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.50. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Cree, Inc. 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.Short term, the slope of this indicator is negative at -0.03. |
Influence of Investor Sentiment on CREE 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) |