Chapter X: The mood of the market toward United Airlines show up in the Daily Closing Altitude and other Sentiment Indicators. |
| Prev. Co. | Next Co. | |
|
| ||
| For United Airlines, the Negative Volume Index is a well known indicator for market sentiment. 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). |
|
How to read the Calibrated NVI for United Airlines: 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". |
| 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 United Airlines covers the few years before the start of the chart at the top of the page. |
| Prev. Co. | Next Co. | |
| ||
| Values above the midline indicate that day traders have positive feelings toward UAL while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. United Airlines stock prices are shown in red. |
| Prev. Co. | Next Co. | |
| ||
| Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. United Airlines 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. |
Influence of Investor Sentiment on UAL stock prices. Also, roadmap and Summary of most effective indicators: |
| In the news, Wednesday, July 01, 2009: An unfavorable condition has developed with Lexmark International, Inc., ticker symbol LXK. Also, there are breaking events concerning Lennar Corporation (LEN) and The Travelers Companies, Inc. (TRV) |