Chapter X: Technical Analysis discovers the range of moods of investors toward GD. |
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| For General Dynamics, the Negative Volume Index is a well known indicator for market sentiment. This modern version makes use of 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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Interpreting the Calibrated NVI for General Dynamics: 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". |
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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 General Dynamics 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 3/12/2010, the weekly average closing altitude was 76.50 percent. The historical Closing Altitude is traced by the blue line in the chart above. 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 GD 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 21.58. General Dynamics stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.70. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. General Dynamics 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 0.04. |
Influence of Investor Sentiment on GD stock prices. Also, roadmap and Summary of most effective indicators: |
| Thursday, March 18, 2010: We have news on Mylan Inc., ticker symbol MYL. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning MicroSoft and Prudential Financial, Inc.. From the News Archive: (3/17/2010 ) Favorable events happened at ACM Income Fund and LoJack Corp. Meanwhile, bad news came from Sempra Energy and Walmart. |