Investors may be trying to gauge the current business cycle phase and how that could potentially impact the portfolio. Business cycles can be one way to analyze portfolio performance. Early on in the cycle, profits tend to grow rapidly, sales tend to improve, and activity rebounds. In the middle of a cycle, growth may be peaking, strong credit growth may still be seen, and policy may swing neutral. Toward the later stages, growth may be moderate, earnings may come under pressure, and credit may tighten. Heading into a period of recession, credit may completely dry up, profits may decline sharply, and there may be policy easing. Investors will often have to adjust portfolio holdings that reflect the current state of a business cycle.
Investors will typically be keeping track of historical highs and lows for a particular stock that they are researching. Watching levels for Vanguard Health Care ETF (ASX:VHT, we can see that the all time high is currently 181.916, and the all time low is 21.2804. Let’s look at some alternate high/low price data:
Six month low: 149.5478
Six month high: 181.916
One year low: 148.31
One year high: 181.916
Three month low: 149.5478
Three month high: 179.42
One month low: 167.64
One month high: 175.7776
Traders might be keeping tabs on the Hull Moving Average for Vanguard Health Care ETF (ASX:VHT). The current HMA reading is 174.03389. Traders may use the HMA to help identify the prevalent market trend. This may also lend to spotting useful exit and entry points on the stock.
Conducting technical analysis of the stock may include following the Keltner Channel indicator. A recent check shows the 20 day lower band at 172.40077 and the 20 day upper band at 174.32137. During a clearly defined trend, a break above or below these levels may point to the underlying strength of the trend. A break above the upper band may signal continuing bullish trend strength, and a break below the lower band may signal continuing bearish trend strength.
The 20 day Chaikin Money Flow indicator is currently -0.42404252. This indicator was developed by Marc Chaikin who observed that the pressures of buying and selling could be figured out by where a period finishes relative to the range of highs and lows.
Traders may use a variety of moving average indicators when examining a particular stock. Checking on some Exponential Moving Averages, we note that the 200 day is 168.75, the 100 day is 169.34404, and the 50 day is 171.06926. Zooming in closer, we note that the 30 day EMA is 172.53899, the 20 day is 173.36107, and the 10 day is noted at 174.08171.
The SMA or Simple Moving Average can be calculated for different time periods. The SMA helps smooth out volatility and makes it a bit less difficult to gauge the price trend of a stock. Let’s view some popular SMA levels below:
Simple Moving Average 20 day: 173.7605
Simple Moving Average 100 day: 165.99416
Simple Moving Average 10 day174.197
Simple Moving Average 50 day: 170.657
Simple Moving Average 30 day: 172.352
Simple Moving Average 200 day: 168.74554
Stock market investing can indeed tug on an individual’s emotional strings. When the market becomes tumultuous, investors may be tempted to act impulsively, or they may freeze and not act at all. Being prepared for various scenarios may help the investor better deal with the market when the time comes. Staying disciplined with portfolio rebalancing and asset allocation may be a big help for the individual investor. Investors who constantly try to outguess the market and chase winners may eventually find themselves swimming upstream. Staying the course and keeping a logical perspective may assist the investor with making the tricky portfolio decisions when necessary.
Investors tracking shares of Vanguard Health Care ETF (ASX:VHT) will note that since the stock opened at 175.4, shares have seen a change of 0.09. During that period, the stock has touched a low of 175.4 and tipped a high of 175.59. Volume on the day is presently 1238.