Chapter X: The mood of the market toward PowerShares QQQ Trust, Series 1 show up in the Daily Closing Altitude and other Sentiment Indicators. |
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| For PowerShares QQQ Trust, Series 1, the Negative Volume Index is a well known indicator for market sentiment. Here the Indicator Plot is the Calibrated NVI which incorporates 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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How to read the Calibrated NVI for PowerShares QQQ Trust, Series 1: 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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| The NVI resembles a fundamental indicator more than a technical indicator in at least one respect, as it seems to be indicative over a span of months or quarters, rather then the extremely short predictive span typical of many technical signals. This chart for PowerShares QQQ Trust, Series 1 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 1/21/2011, the weekly average closing altitude was 46.67 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 QQQQ 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 -40.37. PowerShares QQQ Trust, Series 1 stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.61. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. PowerShares QQQ Trust, Series 1 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 0.35. |
Influence of Investor Sentiment on QQQQ 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) |