Are TIPS Barclays ETF SPDR (IPE) Shares Picking up Steam?

Marco Green
April 16, 2018

When the price is trending to the upside, the dots are below the price action and when the price is trending to the downside, the dots are above the price action. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Even though the name contains the word commodity, CCI can be used on other investment tools such as stocks.

The 14-day ADX for S&P Oil & Gas Expl & Prod SPDR (XOP) is now sitting at 11.86. In general, a rising ADX line means that an existing trend is gaining strength. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. The ADX is used to measure trend strength. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally. Moving averages are considered to be lagging indicators meaning that they confirm trends. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold.

Maryland Capital Management decreased its position in SPDR S&P 500 Trust ETF (NYSEARCA:SPY) by 2.4% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). RSI measures the magnitude and velocity of directional price movements.

The RSI, or Relative Strength Index is another popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. Shares of EM Fixed Income ETF SPDR (EMTL) have a 7-day moving average of 49.33. After a recent check, the 14-day RSI is now at 45.51, the 7-day stands at 46.76, and the 3-day is sitting at 43.95.

Interested investors may be watching the Williams Percent Range or Williams %R. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. S&P Oil & Gas Expl & Prod SPDR (XOP)'s Williams %R presently stands at -46.69. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction.

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