Nov 14 is a negative day so far for iShares Global 100 (NYSEARCA:IOO) as the ETF is active during the day after losing 0.14% to hit $90.94 per share. As a momentum indicator, the Williams R% may be combined with other technicals to help identify a specific trend. The 14-day RSI is now sitting at 41.14, the 7-day is at 26.80, and the 3-day is spotted at 7.92 for India Index MSCI Ishares (INDA). The Relative Strength Index (RSI) is a highly popular technical indicator. Even though stock prices can shift from day to day, long-term investors are usually more concerned about price movements over an expanded period of time. The RSI may be more volatile using a shorter period of time. The RSI operates in a range-bound area with values between 0 and 100. Normal oscillations tend to stay in the range of -100 to +100. Traders tracking this signal may be watching to see if the stock may possibly be heading into oversold territory. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. In general, a rising ADX line means that an existing trend is gaining strength. Some analysts believe that the ADX is one of the best trend strength indicators available.
Currently, the 14-day ADX for Precision Drilling Corp (PDS) is sitting at 28.24. Traders look for divergence between the indicator and the price action. Hong Kong Index MSCI Ishares (EWH) now has a 14-day Commodity Channel Index (CCI) of 144.58. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The Williams %R oscillates in a range from 0 to -100. Because no stock is guaranteed to produce returns, there is a possibility that any stock could potentially lose value. On the flip side, if the indicator goes under -80, this may signal that the stock is oversold. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.
DJ Select Dividend Index Ishares (DVY) now has a 14-day Commodity Channel Index (CCI) of -12.19. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a shorter MA like the 50-day may help with identifying shorter term trading signals. Investors may be chomping at the bit to buy up the dips if the market continues to advance. More interesting news about iShares Dow Jones US Industrial (ETF) (BATS:IYJ) were released by: Seekingalpha.com and their article: "Will Junk Bond Weakness Collapse The Stock Market?" published on November 13, 2017 as well as Nasdaq.com's news article titled: "ETF Preview: ETFs, Stocks Mixed as Investors Eye Earnings" with publication date: November 06, 2017. They may be hoping to ride the wave higher, but may end up shaking their heads.
Making money in the stock market can be challenging, but it is not impossible. Waiting for a bounce that may never come can cause frustration and plenty of second guessing. Accomplished investors typically have a well-rounded understanding of how markets function. This may take a lot of practice and dedication, but it may do wonders for the health of the portfolio.
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