Financial Bull 3X Direxion (FAS) shares opened the last session at 67.00, touching a high of 68.00 and a low of 65.95 , yielding a change of 1.24.  The latest reading places the stock below the Ichimoku cloud which indicates negative momentum and a potential sell signal.

Individual investors may be going to great lengths to make their hard earned money work for them in the stock market. The stock market can be a scary place for beginners with little to no experience. Studying the ins and outs of the markets can help provide a solid base for the new investor to work with. Many people will jump into the game thinking they are going to easily make large profits in the market. Although this is a possibility, many investors will learn the hard way that sustaining profits over the long-term can be a tough endeavor. Studying all the different company information can take up a lot of time and energy. Some people just don’t have the time they would like to put into stock market study. 

The Ichimoku Cloud was originally called the ‘Ichimoku Kinko Hyo.’ Where Ichimoku means ‘one glance,’Kinko ‘balance’ and Hyo ‘chart.’ Thus the full translation could best be described as ‘one glance balanced chart.’ Originally developed by Goichi Hosada pre WWII, a newspaper journalist (published in 1969) who wanted to develop an Uber-indicator that could provide the trader with various levels of support/resistance, entry/exit points, direction of the trend, and strength of the signal.

The most basic theory of this indicator is that if the price is above the cloud, the overall trend is bullish while below the cloud is bearish, and in the cloud is non-biased or unclear. Lastly, when the price is above the cloud, then the top of the cloud will act as a general support level, and when price is below, the cloud base will act as resistance. But remember the cloud has thickness, and thus resistance does as well, which by making these thicker reduces the risk of a false breakout.

Active investors are constantly weighing risk and return when trading in the stock market. Every investor has to evaluate their risk appetite at some point. The amount of risk an investor is willing to take on can have a large impact on expected future returns. Some people may be much more comfortable with riskier investments than others. This can greatly vary from one person to the next. Once the individual investor is comfortable with the amount of money on the table, they should be able to spend their energies focused on finding a winning strategy. Finding a winning strategy may involve many different aspects of stock research. Following a plan may help investors plow through downturns in the markets, and being able to change the plan when things aren’t working can also be a help to longer-term portfolio health.

Another popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock. Currently, the 200-day MA is sitting at 64.12, and the 50-day is 75.04.

The 14-day ADX for Financial Bull 3X Direxion (FAS) is currently at 33.63. 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. Checking in on some other technical levels, the 14-day RSI is currently at 38.22, the 7-day stands at 34.77, and the 3-day is sitting at 33.28. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings.

At the time of writing, Financial Bull 3X Direxion (FAS) has a 14-day Commodity Channel Index (CCI) of -103.00. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average. Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. 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. Financial Bull 3X Direxion (FAS)’s Williams %R presently stands at -90.50. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.

Active investors are constantly weighing risk and return when trading in the stock market. Every investor has to evaluate their risk appetite at some point. The amount of risk an investor is willing to take on can have a large impact on expected future returns. Some people may be much more comfortable with riskier investments than others. This can greatly vary from one person to the next. Once the individual investor is comfortable with the amount of money on the table, they should be able to spend their energies focused on finding a winning strategy. Finding a winning strategy may involve many different aspects of stock research. Following a plan may help investors plow through downturns in the markets, and being able to change the plan when things aren’t working can also be a help to longer-term portfolio health.

Making smart choices when picking stocks is typically a top priority for successful investors. For new investors with little market knowledge, this can be challenging. Figuring out how to start building the stock portfolio may take a lot of time and effort. When the individual investor decides that they want to manage their own portfolio and make their own trades, the journey has just begun. Many individuals will be tempted to pursue stock trading plans based on advice from friends, colleagues, or family members. Even though certain plans may work for someone else, there is no guarantee that success will transfer to others. Investors often need to do their own research in order to obtain as much knowledge as possible before diving in to the markets.