Wall Street pre-market Wednesday was cautious, with US stock market index futures pointing to an opening bell roughly even with Tuesday’s close, with the tech-centric Nasdaq possibly opening lower. European bourses were choppy with Frankfurt in the green, and Asian exchanges closed mixed. Markets have eyes upon the 2 pm ET rate announcement from the US Federal Reserve, and also Fed forecasts of economic growth, inflation and interest rates, which may provide clues if three rather than two rate increases will follow in 2018. Facebook (FB) faces ongoing criticism and lawsuits regarding sale of user data. Bitcoin was trading at $9,070, oil was at $63.90 and 10-year US Treasuries offered 2.88%.
Tracking the indicators for Flexpoint Sensor Systems Inc (FLXT), we can now see that the Chaikin Oscillator reading is below zero. Tracking this signal, traders may be watching for signs of a possible bearish trend forming.
Individual investors are constantly hearing about the next hot stock to buy. Acting purely on these types of tips can be hazardous to the portfolio if the research is not completed. Sometimes these stock tips will pan out and be correct, other times they can leave the investor wondering why they acted on the speculative advice. Even if a stock tip is correct, the results may have already been manifested and the investor would simply be getting in way too late. Knowing what information is reliable can drastically improve the chances of making smarter stock picks. Even the most praised stocks may not be able to withstand an overall market downturn.
Investors and Traders using technical analysis to review stocks may be focusing on the ATR or Average True Range. Currently, Flexpoint Sensor Systems Inc (FLXT) has a 14-day ATR of 0.006322. The Average True Range is an investor tool used to measure stock volatility. The ATR is not used to figure out price direction, just to measure volatility. The ATR is an indicator developed by J. Welles Wilder. Wilder has developed multiple indicators that are still quite popular in today’s investing landscape. The general interpretation of the ATR is the higher the ATR value, the higher the volatility.
Taking a closer look from a technical standpoint, Flexpoint Sensor Systems Inc (FLXT) presently has a 14-day Commodity Channel Index (CCI) of 59.89. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.
For further review, we can take a look at another popular technical indicator. In terms of moving averages, the 200-day is currently at 0.0903, the 50-day is 0.0567, and the 7-day is resting at 0.0298. Moving averages are a popular trading tool among investors. Moving averages can be used to help filter out the day to day noise created by other factors. MA’s may be used to identify uptrends or downtrends, and they can be a prominent indicator for detecting a shift in momentum for a particular stock. Many traders will use moving averages for different periods of time in conjunction with other indicators to help gauge future stock price action.
Currently, the 14-day ADX for Flexpoint Sensor Systems Inc (FLXT) is sitting at 55.04. In general, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.
Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Flexpoint Sensor Systems Inc (FLXT)’s Williams %R presently stands at -22.03. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.
Investors may be looking into the crystal ball trying to calculate where the equity market will be shifting as we move into the second half of the year. Investors may be hard pressed to find bargains with the markets still riding high. Sometimes, keeping it simple may be exactly what the doctor ordered when approaching the markets. Focusing on relevant data instead of information that breezes through may make a huge difference for the individual investor. Focusing on companies that have strong competitive advantages may help fight off unwelcome surprises that often come with uncertain economic landscapes. Focusing on the long-term might be right for some investors. Developing a good safety margin may also help keep the important investing factors in focus. Covering all the bases may help increase the odds of success when trading equities.