We had great news this morning – the first reading of GDP for the second quarter was 4.1%. We should be very happy with this reading – this is the fastest growth in four years. And the President promised us (after the announcement) that we will see even better times.
Two main components of GDP growth were consumer spending (2.69% contribution to growth) and net exports (1.06% contribution). While consumer spending has deep roots in consumer confidence, low unemployment and low inflation, the second component is questionable. One of the explanations for such a large contribution was the desire of exporting companies to increase exports before new tariffs are introduced.
Is that good news for the markets? The total value of all U.S. Stocks is now about 154% of GDP – with the historical average being about 130% according to Bloomberg. We are not making any predictions about the stock market directions – but want you to think about this data and remove the rose-colored glasses that some of the politicians like to wear all the time.
DIA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 39 cases where DIA's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where DIA's RSI Oscillator exited the oversold zone, of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 24, 2024. You may want to consider a long position or call options on DIA as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIA advanced for three days, in of 379 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for DIA turned negative on April 02, 2024. 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 .
DIA moved below its 50-day moving average on April 10, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DIA crossed bearishly below the 50-day moving average on April 12, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 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 DIA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for DIA entered a downward trend on April 24, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category LargeValue