DIN Newsletter for October 5, 2017

This article was originally published on this site

Stock Of The Day: Buy or Sell?

Norfolk Southern (NSC) is a Buy

Chart for NSC

Risk levels may be somewhat lower than normal.


CHARTS OF THE DAY

GP Strategies Corp. [GPX]

Chart for GPX

GPX share price is $30.70, which is 4% above its 21-day moving average of $29.51.

GPX share price is $30.70, which is 7% above its 50-day moving average of $28.77.

GPX share price is $30.70, which is 15% above its 200-day moving average of $26.61.


ProShares Ultra Nasdaq Biotechnology [BIB]

Chart for BIB

BIB share price is $63.71, which is 4% above its 21-day moving average of $61.12.

BIB share price is $63.71, which is 11% above its 50-day moving average of $57.62.

BIB share price is $63.71, which is 26% above its 200-day moving average of $50.49.


Cemex S.A.B. de C.V. [CX]

Chart for CX

CX share price is $9.03, which is 1% below its 21-day moving average of $9.13.

CX share price is $9.03, which is 3% below its 50-day moving average of $9.30.

CX share price is $9.03, which is 2% above its 200-day moving average of $8.85.



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 1.3582. This is 52.7% above the historic median figure of 0.89.

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 16.02. This is 58.2% above the historic median figure of 10.13.

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 9.63. This is 38.8% below the historic median figure of 15.75.

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.