Technical Indicators under Review: Macy’s Inc (NYSE: M)

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Stocks rose sharply Monday, April 9, following tweets from Donald Trump that appeared to indicate the U.S. was softening its approach in its trade battle with China.

In a tweet on Sunday, April 8, Trump said: “President Xi and I will always be friends, no matter what happens with our dispute on trade. China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!”.

The Dow Jones Industrial Average rose 391 points, or 1.64%, to 24,324, the S&P 500 gained 1.71% and the Nasdaq was up 2.07% as tech stocks were a standout Monday.

Leading the Dow higher Monday were Merck, Intel, Cisco Systems Inc. (CSCO) and Microsoft Corp. (MSFT).

Stocks were battered on Friday, April 6, tumbling as investors worried over the escalation of the trade battle between the U.S. and China. A weaker-than-predictable U.S. jobs report for March also didn’t help sentiment. The Dow on Friday fell 572.46 points, or 2.34%, to 23,932.76.

Boeing Co. (BA) rose 1.02% on Monday after the aerospace giant reached a $12 billion deal to sell 47 new Dreamliner jets to American Airlines Inc. (AAL).

Merck & Co. said a Phase 3 trial of its cancer treatment Keytruda met the primary endpoint of overall survival as monotherapy for the first-line treatment of locally advanced or metastatic non-small cell lung cancer. The stock rose 6.41%.

Deutsche Bank AG (DB) rose 2.34% after Germany’s largest lender shook up top management on Sunday, replacing CEO John Cryan after three straight years of losses totaling more than $10 billion and an ongoing erosion of market share in its once-dominant investment banking and trading unit. (Source: TheStreet)

Stock in Focus: Macy’s Inc (NYSE: M)

Macy’s Inc (NYSE: M) has grabbed attention from the analysts when it experienced a change of -0.20% in the current trading session to trade at $29.74. A total of 3,151,229 shares exchanged hands during the intra-day trade contrast with its average trading volume of 10.28M shares, while its relative volume stands at 0.53. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it.  If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name.  When stocks are *very* In Play one can see a RVOL of 5 and above.  The higher the RVOL the more In Play the stock is.

Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.

In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.

Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.

Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.

Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, Macy’s Inc (NYSE: M) stock is found to be 4.32% volatile for the week, while 3.67% volatility is recorded for the month.

Technical’s Snapshot:

The stock has a market cap of $9.42B and the number of outstanding shares has been calculated 316.11M. Based on a recent bid, its distance from 20 days simple moving average is 2.51%, and its distance from 50 days simple moving average is 7.68% while it has a distance of 25.35% from the 200 days simple moving average. The company’s distance from 52-week high price is -4.19% and the current price is 70.87% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 56.96 together with Average True Range (ATR 14) of 1.19.

Stock’s Valuation:

Past 5 years growth of M observed at -0.40%, and for the next five years the analysts that follow this company is expecting its growth at 18.64%. The stock’s price to sales ratio for trailing twelve months is 0.38 and price to book ratio for the most recent quarter is 1.61, whereas price to cash per share for the most recent quarter are 6.47. Its quick ratio for the most recent quarter is 0.40. Analysts mean recommendation for the stock is 2.80. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

Disclaimer: Any news, report, research, and analysis published on are only for information purposes. Alpha Beta Stock (ABS) makes sure to keep the information up to date and correct, but we didn’t suggest or recommend buying or selling of any financial instrument unless that information is subsequently confirmed on your own. Information in this release is fact checked and produced by competent editors of Alpha Beta Stock; however, human error can exist.

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Donald S. Wiggins

Donald S. Wiggins

Donald S. Wiggins is passionate about business and finance news with over 5 years in the industry starting as a writer working his way up into senior positions. He is the driving force behind with a vision to broaden the company’s readership throughout 2016. Wiggins is an editor and reporter of “Services” Category.

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