Swing Trader: Sector Rotation Strategy (TA&FA) Generates 6.23% for THRM
In the dynamic world of finance, swing trading strategies play a significant role in capitalizing on short-term price movements. One such strategy, known as sector rotation, combines technical analysis (TA) and fundamental analysis (FA) to identify potential opportunities in different sectors. This article focuses on THRM, a ticker that has recently generated a return of 6.23% using the sector rotation strategy.
Analyzing THRM's Stochastic Oscillator:
The Stochastic Oscillator is a popular technical analysis tool used to identify overbought and oversold conditions in a security. By analyzing THRM's Stochastic Oscillator, we observe that it has remained in the oversold zone for three consecutive days. This indicates that the price of THRM may soon experience a rebound.
Understanding the Implications:
When a ticker stays in the oversold zone for an extended period, it suggests an increased likelihood of an uptrend in the near future. Traders and investors often interpret this as a potential buying opportunity, anticipating that the price will bounce back as the oversold conditions revert to more typical levels.
By combining the sector rotation strategy with this analysis, traders can identify specific sectors that are likely to outperform in the current market environment. This approach allows them to allocate their capital strategically, focusing on sectors with strong fundamentals and positive technical indicators, such as oversold conditions.
The Benefits of Sector Rotation Strategy:
Sector rotation strategies offer several advantages to swing traders. By diversifying their investments across different sectors, traders can reduce risk and take advantage of varying market conditions. This strategy allows them to capture potential gains from sectors that are experiencing upward momentum while avoiding sectors that may be underperforming.
Furthermore, the combination of technical and fundamental analysis provides a more comprehensive view of market dynamics. Technical analysis helps identify short-term price patterns and indicators, while fundamental analysis evaluates the underlying financial health of a sector or company. Integrating these two approaches can enhance the decision-making process and increase the probability of successful trades.
THRM's recent performance, generating a return of 6.23% through the sector rotation strategy, highlights the potential benefits of combining technical and fundamental analysis. The observation of THRM's Stochastic Oscillator remaining in the oversold zone for three days suggests a probable uptrend in the near future. By employing sector rotation, traders can capitalize on such opportunities, taking advantage of market dynamics to generate favorable returns.
The RSI Indicator for THRM moved out of oversold territory on September 08, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 31 similar instances when the indicator left oversold territory. In of the 31 cases the stock moved higher. This puts the odds of a move higher at .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where THRM advanced for three days, in of 314 cases, the price rose further within the following month. The odds of a continued upward trend are .
THRM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on September 22, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on THRM as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
THRM moved below its 50-day moving average on September 05, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for THRM crossed bearishly below the 50-day moving average on September 11, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 21 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 THRM 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 THRM entered a downward trend on September 15, 2023. 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 Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. THRM’s price grows at a lower 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 that the returns do not compensate for the risks. THRM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
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 Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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 (2.722) is normal, around the industry mean (3.078). THRM has a moderately high P/E Ratio (153.846) as compared to the industry average of (39.402). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.666). THRM has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). P/S Ratio (1.311) is also within normal values, averaging (5.438).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of automotive parts
|MFs / NAME||Price $||Chg $||Chg %|
|BlackRock Advantage Large Cap Core Instl|
|Goldman Sachs US Equity Insights A|
|Victory Integrity Mid-Cap Value Y|
|American Funds American Mutual 529A|
|Spirit of America Real Estate Inc & Gr A|
A.I.dvisor indicates that over the last year, THRM has been loosely correlated with ADNT. These tickers have moved in lockstep 59% of the time. This A.I.-generated data suggests there is some statistical probability that if THRM jumps, then ADNT could also see price increases.