Chapter X: The mood of the market toward R.R. Donnelley & Sons Company show up in the Daily Closing Altitude and other Sentiment Indicators. |
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| A well known sentiment indicator is the NVI or Negative Volume Index for R.R. Donnelley & Sons Company. 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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How to read the Calibrated NVI for R.R. Donnelley & Sons Company: 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 R.R. Donnelley & Sons Company 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 66.69 percent for the week ending 2/11/2011. 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 RRD 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 0.83. R.R. Donnelley & Sons Company stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.78. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. R.R. Donnelley & Sons Company 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 0.00. |
Influence of Investor Sentiment on RRD stock prices. Also, roadmap and Summary of most effective indicators: |
| Friday, February 18, 2011: We have news on Fiserv, Inc., ticker symbol FISV. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Zimmer Holdings, Inc. and D.R. Horton, Inc.. From the News Archive: (2/18/2011 ) Favorable events happened at Robert Half International Inc. and Southwestern Energy Company. Meanwhile, bad news came from McCormick & Company, Incorporated and Reynolds American, Inc.. |