DIN Newsletter for July 22, 2016

This article was originally published on this site

Stock Of The Day: Buy or Sell?

AmerisourceBergen (ABC) is a Buy

Chart for ABC

Risk levels may be somewhat lower than normal.


CHARTS OF THE DAY

Tandy Leather Factory, Inc. [TLF]

Chart for TLF

TLF share price is $7.23, which is 1% below its 21-day moving average of $7.34.

TLF share price is $7.23, which is 0% below its 50-day moving average of $7.26.

TLF share price is $7.23, which is 5% below its 200-day moving average of $7.63.


Market Vectors Preferred Securities ex Financials ETF [PFXF]

Chart for PFXF

PFXF share price is $20.93, which is 1% above its 21-day moving average of $20.65.

PFXF share price is $20.93, which is 3% above its 50-day moving average of $20.29.

PFXF share price is $20.93, which is 8% above its 200-day moving average of $19.46.


ProShares Trust VIX Short-Term Futures ETF [VIXY]

Chart for VIXY

VIXY share price is $7.61, which is 16% below its 21-day moving average of $9.05.

VIXY share price is $7.61, which is 28% below its 50-day moving average of $10.53.

VIXY share price is $7.61, which is 55% below its 200-day moving average of $16.89.



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 1.2346. This is 42.4% 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 -15.42. This is 231.2% below the historic median figure of 11.75.

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 12.74. This is 28.2% below the historic median figure of 17.75.

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.

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