DIN Newsletter for June 8, 2017

This article was originally published on this site

Stock Of The Day: Buy or Sell?

Invesco (IVZ) is a Sell

Chart for IVZ

Risk levels may be somewhat higher than normal and additional caution is warranted.


CHARTS OF THE DAY

Gulf Island Fabrication Inc. [GIFI]

Chart for GIFI

GIFI share price is $9.30, which is 1% below its 21-day moving average of $9.36.

GIFI share price is $9.30, which is 7% below its 50-day moving average of $9.99.

GIFI share price is $9.30, which is 14% below its 200-day moving average of $10.81.


ProShares Short SmallCap600 [SBB]

Chart for SBB

SBB share price is $38.60, which is 1% below its 21-day moving average of $38.83.

SBB share price is $38.60, which is 3% above its 50-day moving average of $37.38.

SBB share price is $38.60, which is 4% below its 200-day moving average of $40.20.


First Trust CBOE S&P 500 VIX Tail Hedge Fund [VIXH]

Chart for VIXH

VIXH share price is $25.87, which is 1% above its 21-day moving average of $25.53.

VIXH share price is $25.87, which is 2% above its 50-day moving average of $25.31.

VIXH share price is $25.87, which is 6% above its 200-day moving average of $24.35.



Economic Indicators

Total Market Cap / GDP

Chart for Total Market Cap / GDP

The ratio of the Total Market Capitalization (Wilshire 5000) to United States GDP is 1.3269. This is 50.3% above the historic median figure of 0.88.

The higher the Market Cap/GDP figure is relative to its median level, the higher the perceived risk in the market. Markets can remain overvalued for extended time periods.


S&P Earnings Growth

Chart for S&P Earnings Growth

The S&P Earnings Growth is 9.27. This is 0% above the historic median figure of 9.27.

When the S&P Earnings Growth trends higher, the stock market is perceived to have lower risk.


Sentiment

VIX

Chart for VIX

The VIX figure is 10.39. This is 40.5% below the historic median figure of 17.47.

The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Historically, VIX levels above 50 correlate closely with periods of stock market panic while VIX levels below 20 are more typical during relatively calm periods in the market.