Sizing up Direxion S&P 500 Bear 1X (SPDN)’s Gordson Hollis PIS Indicator

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Investors monitoring the Gordson Hollis Price Index Saturation levels on shares of Direxion S&P 500 Bear 1X (SPDN) are taking a closer look as a key level has been reached. After a recent review, the reading is currently E (Empty), revealing a strong sell trend. Gordon Hollis created the Price Index Saturation indicator in 1998. The Gordson Hollis Price Index Saturation or Gordson Hollis PIS level indicator uses a combination of volume continuity analysis and historical price deviation to create a discernable buy or sell signal. Gordson Hollis labeled these signals as Full or Empty.  When presenting the theory, Gordson Hollis believed that PIS levels were best grouped in what he labeled “bougets”.

Direxion S&P 500 Bear 1X (SPDN) shares have traded down the past week in the red, yielding negative results for the shares at they ticked -0.76%. In taking a look at recent performance, we can see that shares have moved -3.07% over the past 4-weeks, -6.92% over the past half year and -10.04% over the past full year.

Successful traders often craft disciplined strategies when dealing with the share market. These strategies can range from very simple to very complex. Following a specific strategy might assist keep emotions on the sidelines when trouble comes. Conducting the proper analysis before things get out of hand can assist ease the burden of market turmoil because the preparation has already started. The road to becoming a good trader may be long and winding. Keeping tabs on all the macro and micro economic happenings may seem like an impossible task. Focusing on the paramount elements can assist keep the trader directed down the right path. There is obviously a lot to be learned by studying the markets, and there are rarely any shortcuts that can be taken to lasting success in the share market.

Currently, Direxion S&P 500 Bear 1X (SPDN) has a 14-day Commodity Channel Index (CCI) of -97.97. The CCI technical indicator can be employed to assist understand if a stock is overbought or oversold. CCI may also be used to aid in the discovery of divergences that could possibly signal reversal moves. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal.

Tracking other technical indicators, the 14-day RSI is right now standing at 31.42, the 7-day sits at 27.48, and the 3-day is resting at 30.82 for Direxion S&P 500 Bear 1X (SPDN). The Relative Strength Index (RSI) is a highly leading technical indicator. The RSI is computed base on the speed and direction of a stock’s price movement. The RSI is considered to be an internal strength indicator, not to be confused with relative strength which is compared to other stocks and indices. The RSI value will always move between 0 and 100. One of the most leading time frames using RSI is the 14-day.

Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can assist investors understand where the stock has been and assist determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time. Currently, the 7-day moving average is sitting at 27.52.

Investors have a wide range of tools at their disposal when undertaking stock research. Many investors will opt to use a combination of technical and fundamental analysis. Staying on top of the share market is no easy task. what information is paramount and how to interpret that information can be the difference between substantial profits and big losses. Investors are commonly trying to find a way to achieve long lasting success in the share market. Many investors will experience temporary success that may give them false confidence down the road. Digging into the details and learning as much as possible about how markets work can be a huge assist to the investor. 

Let’s take a further look at the Average Directional Index or ADX. The ADX measures the strength or weakness of a particular trend. Investors and traders may be gazing to understand if a stock is trending before employing a specific trading strategy. The ADX is typically used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) which point to the direction of the trend. The 14-day ADX for Direxion S&P 500 Bear 1X (SPDN) is currently at 32.07. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend.

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