Can you explain your chart in elementary terms ....
Certainly. I would be happy to do so, and thanks for your visit to my home!
First of all, the funds that are being tracked in this chart are AGG (similar to the F Fund), EFA (similar to the I Fund), IWM (similar to the S Fund), SPY (similar to the C Fund), and UUP, a US dollar index which often moves the opposite way that the I Fund does.
The second column is today's fund price, and the third column is the percentage of price change from yesterday.
The next column, "Volume Buzz," is one that I find can give important clues. It tracks the rate of change in volume of fund buys and sells since yesterday. It is important to remember here that it only tracks rate of change. A big positive number is not necessarily a good thing, it just means that there is a big increase in interest in the fund, it could be buying or it could be selling. A negative number means that people aren't as interested in making changes to their holdings in the fund, it doesn't necessarily mean that people are selling. So how does it help? Well, put Volume Buzz together with % Change and you can get a good idea of where the fund is going in the short term.
The yellow and orange colored balls are also short term indicators. They appear when today's price of the fund is above the 3-day (yellow) or 10-day (orange) average of daily prices. The light blue ball shows if a fund's current price is above the 20-day average, which is approximately one month of market prices.
Then we get to the longer term averages. The light green ball shows when a fund's current prices are above the 50-day average, about two and a half months of market prices. The medium green ball indicates a current price that is above the 100-day average, or six months. And the dark green ball appears if a fund's prices are above the 200-day average, which is about a year.
And conversely, the red balls appear if a fund's current price is
below the 3-day, 20-day or 50-day average of prices.
The last two columns are "Relative Strength 1-Year vs SP-500" and "Latest Short Interest Ratio." The Relative Strength column shows me whether the fund is doing better or worse than the S&P 500 on a yearly basis. SPY will always be at 100% because it is being measured against itself.
And the last column, Short Interest Ratio, tells me how many days it would take for short sellers to cover their entire positions if the price of the fund begins to rise. A low number is good for the bulls and a higher number is good for the bears.
Clear as mud? Please let me know if you have any questions or if I can make something more clear. And before you go, have a cookie!
Maggie