Chapter X: Technical Analysis discovers the range of moods of investors toward M. |
| Prev. Co. | Next Co. | |
|
| ||
| A well known sentiment indicator is the NVI or Negative Volume Index for Macy's, Inc.. 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). |
|
How to read the Calibrated NVI for Macy's, 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". |
| 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 Macy's, Inc. 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 11/26/2010, the weekly average closing altitude was 39.99 percent. 50 percent closing altitude is marked as the midline. 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 M 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 -23.57. Macy's, Inc. stock prices are shown in red. |
| Prev. Co. | Next Co. | |
| ||
| The Volume Portion is low for the latest data at 0.40. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Macy's, 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 -0.31. |
Influence of Investor Sentiment on M 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) |