Investment Ideas Monthly – Monday May 30, 2016

Investment Ideas Monthly

Wilshire 5000 Index

Wilshire 5000 Index

(Monday – May 30, 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 May 27 was Bullish, 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 Up over the past five days, the longer trend (two weeks) is Up. MACD is Positive. The S&P 500 is positive YTD at 3.67 %.

Last Week:

Market conditions are Bullish in a Bear Market as of 2016-05-27. This means traders and investors should consider trading with a Neutral or Bullish bias by buying stocks and setting tight stops.

The Momentum Indicator is currently indicating a bullish trend in stocks. Risk of a trend reversal is low. This means the current short term bullish trend is likely to continue.

CBOE Volatility Index® (VIX) 13.12 declined 2.08 for the week as the S&P 500 Index continued higher. 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.

 

Wilshire index Price: (Total Wilshire 5000 value divided by 5000)

 

May 27            $4.340

May 20            $4.244

May13             $4.223

May 06            $4.252

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.

Technical analysis is the study of past market prices and trading volume. It will keep you trading with the market, rather than against it.

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.
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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