Choppy Market Trader: CRM 10.66% Gain with TA&FA Strategy
Choppy Market Trader, Popular Stocks: Market Neutral Strategy (TA&FA) Generates 10.66% for CRM
In a world where traditional stock picking is often tested by market volatility, technical and fundamental analysis (TA&FA) strategies have consistently shown their resilience. Demonstrating this resilience is the Market Neutral Strategy, which, recently, has generated a 10.66% return on CRM, a popular stock among traders.
One of the striking elements contributing to this impressive yield is the recent turn of CRM's Moving Average Convergence Divergence (MACD) to positive territory. For those unfamiliar with this term, MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. When the MACD turns positive, it is often seen as a bullish signal, pointing to potential upward momentum in the price.
On July 11, 2023, CRM's MACD Histogram indicated a positive shift. This is not a standalone occurrence, but part of a larger pattern. A look back at past instances shows that whenever CRM's MACD turned positive, the stock continued to rise in 36 of 46 cases over the following month. This gives traders a historical probability of 78% for a continued upward trend.
What's particularly interesting here is the effective use of the Market Neutral Strategy (TA&FA) in capturing these returns. This strategy is essentially about balancing long and short positions to achieve 'market neutrality'. In other words, the strategy aims to mitigate the effects of market swings, allowing the trader to focus on capturing returns from the individual stocks' performance.
By integrating the insights from CRM's MACD positive shift into this strategy, traders were able to leverage the high probability of the stock's upward trend and translate it into an impressive 10.66% return.
This instance underscores the efficacy of combining technical indicators like the MACD with a market-neutral trading strategy. It provides an excellent case study for traders and investors who are seeking to navigate choppy markets, highlighting the potential for positive returns even in the midst of market fluctuations.
CRM's Indicator enters downward trend
The Aroon Indicator for CRM entered a downward trend on August 29, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 153 similar instances where the Aroon Indicator formed such a pattern. In of the 153 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on CRM as a result. In of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CRM turned negative on September 18, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
CRM moved below its 50-day moving average on September 15, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CRM crossed bearishly below the 50-day moving average on September 21, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CRM advanced for three days, in of 327 cases, the price rose further within the following month. The odds of a continued upward trend are .
CRM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CRM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.397) is normal, around the industry mean (19.852). P/E Ratio (126.582) is within average values for comparable stocks, (152.598). Projected Growth (PEG Ratio) (1.283) is also within normal values, averaging (2.633). Dividend Yield (0.000) settles around the average of (0.088) among similar stocks. P/S Ratio (6.068) is also within normal values, averaging (74.491).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a developer of on-demand customer relationship management software technology
Industry PackagedSoftware
CRM and
Correlation & Price change
A.I.dvisor indicates that over the last year, CRM has been loosely correlated with ANSS. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if CRM jumps, then ANSS could also see price increases.
| Ticker / NAME | Correlation To CRM | 1D Price Change % | ||
|---|---|---|---|---|
| CRM | 100% | +0.23% | ||
| ANSS - CRM | 62% Loosely correlated | +1.20% | ||
| WDAY - CRM | 61% Loosely correlated | -8.49% | ||
| HUBS - CRM | 61% Loosely correlated | +1.58% | ||
| NOW - CRM | 61% Loosely correlated | +1.31% | ||
| ESTC - CRM | 61% Loosely correlated | -2.60% | ||
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