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Published: Tue, April 10, 2018
Economy | By Melissa Porter

Is S&P 500 Buywrite Powershares (PBP)'s RMI Headed Towards a Peak?

Is S&P 500 Buywrite Powershares (PBP)'s RMI Headed Towards a Peak?

In taking a look at recent performance, we can see that shares have moved -4.66% over the past week, -14.18% over the past 4-weeks, 4.58% over the past half year and 31.44% over the past full year. Ultrapro S&P 500 Proshares (UPRO) now has a 14-day Commodity Channel Index (CCI) of -60.52. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. The ADX alone was created to measure trend strength. A value of 25-50 would indicate a strong trend. Presently, the 14-day ADX for S&P 500 Cons Staples EW Guggenheim (RHS) is 27.98. Levels above -20 may indicate the stock may be considered is overbought. Calculated from the last five balance points, the Balance Step indicator can help determine whether a bullish or bearish trend is developing near-term. If the indicator travels under -80, this may signal that the stock is oversold. Flow Traders U.S. LLC acquired a new stake in Guggenheim Invest S&P 500 Eql Wght Tech in the fourth quarter worth $389,000. Moving averages can be very helpful for identifying peaks and troughs.

Similar to RSI, the RMI indicator moves in the range of 0 to 100; and the same as with RSI, the relative Momentum Index's values above 70 and below 30 are considered as an indication of overbought and oversold conditions. Many technical chart analysts believe that an ADX reading over 25 would suggest a strong trend. Employing the use of the moving average for technical equity analysis is still highly popular among traders and investors. Moving averages can help spot trends and price reversals. They may also be used to assist the trader figure out proper support and resistance levels for the stock. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. Wilder introduced RSI in his book "New Concepts in Technical Trading Systems" which was published in 1978. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. This represents a $0.43 annualized dividend and a yield of 0.40%. The indicator is computed by using the average losses and gains of a stock over a certain time period. Currently, the 200-day MA is sitting at 68.37. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70.

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