DIN Newsletter for August 5, 2016

This article was originally published on this site

Stock Of The Day: Buy or Sell?

American Electric (AEP) is a Buy

Chart for AEP

Risk levels may be somewhat lower than normal.


CHARTS OF THE DAY

First Trust Global Tactical Commodity Strategy Fund [FTGC]

Chart for FTGC

FTGC share price is $21.11, which is 1% below its 21-day moving average of $21.23.

FTGC share price is $21.11, which is 0% above its 50-day moving average of $21.07.

FTGC share price is $21.11, which is 8% below its 200-day moving average of $22.84.


Hortonworks Inc [HDP]

Chart for HDP

HDP share price is $12.63, which is 10% above its 21-day moving average of $11.49.

HDP share price is $12.63, which is 7% above its 50-day moving average of $11.82.

HDP share price is $12.63, which is 25% below its 200-day moving average of $16.85.


Great Ajax Corp [AJX]

Chart for AJX

AJX share price is $13.94, which is 1% above its 21-day moving average of $13.78.

AJX share price is $13.94, which is 5% above its 50-day moving average of $13.25.

AJX share price is $13.94, which is 10% above its 200-day moving average of $12.71.



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 1.2168. This is 40.3% above the historic median figure of 0.87.

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 -12.91. This is 213.6% below the historic median figure of 11.37.

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


Sentiment

VIX

Chart for VIX

The VIX figure is 12.42. This is 30% below the historic median figure of 17.74.

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.