As soon as an individual decides what they want out of their investments, they can start formulating the best way to accomplish those goals. The time horizon for each investor may be different. Fluctuations in the financial markets can have a big effect on shorter-term investments. Investors that need a certain amount of money in a shorter amount of time may be looking to develop a stock market strategy with a bit less risk involved. On the other end of the spectrum, a younger investor with a longer time horizon might be able to search for stocks with a higher potential for growth that may involve much more risk. The volatility of today’s markets can test the nerves of any investor. Understanding volatility and market fluctuations can help the investor gauge their risk tolerance in the markets.
Technical analysis on the stock may include following the Keltner Channels indicator. Currently, the 20 day upper band is 31.43013 for MEDNAX, Inc.(NYSE:MD). The 20 day lower band is noted at 30.50986. The KC indicator is considered a lagging indicator. Traders may use the values to help spot overbought and oversold conditions.
Putting a closer focus on shares of MEDNAX, Inc.(NYSE:MD), we see that since the opening price of 30.4, the stock has moved -0.37. Tracking shares, we note that the consensus stock rating is Sell. Volume today clocks in around 20844. Over the course of the current session, the stock has topped out at 30.41 and seen a low price of 29.89. Investors will be putting 5/2/2019 on the schedule as the company is slated to next report earnings around that date.
Traders following the Chaikin Money Flow indicator will note that the current 20 day reading is -0.32332295. The CMF value will fluctuate between 1 and -1. In general, a value closer to 1 would indicate higher buying pressure. A value closer to -1 would represent higher selling pressure.
Traders following the Hull Moving Average will note that the current level is 30.542685. The calculation uses the weighted moving average and it puts the emphasis on recent prices over older prices.
Technical traders focusing on Donchian Channels will note that the 20 period lower band reading is currently 29.34. The 20 period upper band reading is 33.3. Donchian Channels can be used to gauge the volatility of a market. This is a banded indicator akin to Bollinger Bands.
Traders following the stock may be watching SMA or Simple Moving Average Levels. Many traders will be watching out for when the shorter-term averages cross above the longer-term averages as this may point to the start of an uptrend. Let’s look at the following SMA readings:
SMA 50 day: 33.3048
SMA 30 day: 31.751333
SMA 200 day: 36.59705
SMA 20 day: 30.70775
SMA 100 day: 34.47725
SMA 10 day30.1775
Taking a look at some historical highs and lows for MEDNAX, Inc. (NYSE:MD), we see that the all time high is currently 86.09, and the all time low is 1.5. Investors often pay added attention to a stock when it is nearing a historical high point or low point. For the last year, the high price is 58.19, and the low price stands at 29.34. For the last six months, the high was seen at 48.77, and the low was tracked at 29.34. If we move in closer, the three month high/low is 38.885/29.34, and the one month high/low is 37.41/29.34.
Traders have the ability to use a wide range of indicators when studying stocks. Each trader will typically find a few indicators that they heavily rely on. The Ichimoku Cloud indicator works to identify trend direction, gauge momentum, and identify trading opportunities based on crossovers. We can view some Ichimoku indicator levels below:
Ichimoku Lead 1: 35.80625
Ichimoku Lead 2: 36.06
Ichimoku Cloud Base Line: 31.76
Ichimoku Cloud Conversion Line: 30.12
When getting into the markets, most investors realize that riskier stocks may have an increased potential for higher returns. If investors decide to take a chance on some of these stocks, they may want to employ some standard techniques to help manage that risk. This may involve creating a diversified stock portfolio. Mixing up the portfolio with stocks from different sectors, market caps, and growth potential, may be the right move. In general, the goal is to maximize returns in accordance with the individual’s specific risk profile. It should be obvious that no matter how well rounded the portfolio is, there are always risks in the equity markets. Having a sound plan before investing can help ease the burden of knowing that markets can sometimes do crazy things without any rhyme or reason.