Chapter X: The mood of the market toward Norfolk Southern Corp. show up in the Daily Closing Altitude and other Sentiment Indicators. |
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| Negative Volume Index (NVI) is a traditional Sentiment Indicator for Norfolk Southern Corp.. 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). |
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Interpreting the Calibrated NVI for Norfolk Southern Corp.: 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 Norfolk Southern Corp. 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 65.70 percent for the week ending 9/3/2010. 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 NSC 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 25.39. Norfolk Southern Corp. stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.73. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Norfolk Southern Corp. 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 -0.18. |
Influence of Investor Sentiment on NSC stock prices. Also, roadmap and Summary of most effective indicators: |
| Tuesday, September 07, 2010: We have news on Qiagen N.V., ticker symbol QGEN. A significant moving average event has happened. Also, there are breaking events concerning Mattel, Inc. and SYSCO Corporation. From the News Archive: (9/7/2010 ) Bad news came from Expeditors International of Washington, Brocade Communications Systems, Inc., Varian Medical Systems, Inc., and Apartment Investment and Management Co.. |