DIN Newsletter for July 25, 2016

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Stock Of The Day: Buy or Sell?

Abbott Labs (ABT) is a Buy

Chart for ABT

Risk levels may be somewhat lower than normal.


CHARTS OF THE DAY

Wabash National Corp. [WNC]

Chart for WNC

WNC share price is $13.18, which is 1% below its 21-day moving average of $13.25.

WNC share price is $13.18, which is 1% above its 50-day moving average of $13.08.

WNC share price is $13.18, which is 4% above its 200-day moving average of $12.63.


La Jolla Pharmaceutical Company [LJPC]

Chart for LJPC

LJPC share price is $16.14, which is 3% below its 21-day moving average of $16.64.

LJPC share price is $16.14, which is 9% below its 50-day moving average of $17.82.

LJPC share price is $16.14, which is 17% below its 200-day moving average of $19.47.


Vanguard Financials ETF – DNQ [VFH]

Chart for VFH

VFH share price is $49.15, which is 3% above its 21-day moving average of $47.80.

VFH share price is $49.15, which is 4% above its 50-day moving average of $47.30.

VFH share price is $49.15, which is 5% above its 200-day moving average of $46.62.



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 1.2301. This is 41.9% 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 12.02. This is 32.3% 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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