Investment Ideas Monthly – Monday May 02, 2016
Investment Ideas Monthly
Wilshire 5000 Index
(Monday – May 02, 2016)
A monthly forecast and investment ideas covering a range of technical and fundamental analysis securities to assist you in when to buy and when to sell a specific security.
This is informational only and is not meant as a recommendation to buy or sell any security, but a guide to start the research process before making any stock purchase or a sell recommendation.
The information provided is based on timely fundamental, technical analysis or both. Technical analysis can change hour by hour; tick by tick so keep that in mind as to the timeliness of the information especially if you are reading this days or even weeks later.
Current Market Trend
The market trend as of this past Friday Apr. 29 was Neutral, the price trend has moved Upward though the 20 day moving average and 20 has moved above the 50 day average .
The primary trend is Down over the past five days, the longer trend (two weeks) is Up. MACD is Positive. The S&P 500 is positive YTD at 1.74 %.
CBOE Volatility Index® (VIX) 15.70 closed up 2.48 for the week after making an intraday low of 12.50 on April 20. Based on real-time prices of options on the S&P 500® Index, VIX reflects investors’ consensus view of future (30-day) expected stock market volatility.
Last Week:
Market conditions are Mildly bearish in a Bear Market as of 2016-04-29. This means traders and investors should consider trading with a bearish bias by raising stop levels on winners and selling losers.
The Momentum Indicator is currently at -7.21 indicating short term Non-trending environment in stocks. This means the stock market is stalling in the current short term trend.
Wilshire index Price: (Total Wilshire 5000 value divided by 5000)
Apr 29 $4.276
Apr 15 $4.293
Apr 8 $4.214
Mar 31 $4.245
Mar 24 $4.183
Mar 18 $4.219
Mar 11 $4.161
Mar 04 $4.122
Jan 02 2016 – $4.234
MACD is a simple momentum indicator. Buy signals occur when the black line crosses over the red line. Sell signals happen when the black line crosses beneath the red line.
3 types of analysis.
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Technical analysis is the study of past market prices and trading volume. It will keep you trading with the market, rather than against it.
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Fundamental analysis is the study of business quality and value. It will help you pinpoint great businesses at great prices… and avoid bad businesses at inflated prices.
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Sentiment analysis is the study of the opinions of market participants. You can use it to make sure you’re not standing with the crowd just as it’s about to get dumped overboard.
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Trailing Stop Loss
Don’t forget to place a trailing stop loss on all your positions as you make the purchases. Depending on your risk tolerance place a stop loss anywhere between 10 and 25 percent for mid to large cap stocks, ETF’s and mutual funds. Consider even large percentage for small cap stocks including mutual funds and ETFs.
Daniel Iuculano, AAMS CMFC
Accredited Asset Management Specialist
Chartered Mutual Fund Counselor
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