U.S. stock benchmarks turned south late-morning Monday as a downturn in technology and health-care stocks weighed on the broader market.
The day’s early advance was supported by a series of deals, notably a $26 billion bid for Sprint Corp. by T-Mobile US Inc., which had assisted to bolster buying enthusiasm on Wall Street.
1:20 p.m. EST, the Dow Jones Industrial Average fell 10.37 points, or 0.04%, to 24,300.82, with McDonald’s stock contributing about 60 points to that climb. The S&P 500 index declined 9.41 points, or 0.35%, to 2,660.5, with a 0.2% drop in health care, technology, industrials and materials, weighing on the broad-market index.
The technology-laden Nasdaq Composite Index meanwhile, turned decidedly negative, sliding 39.17 points, or 0.55%, to 7,080.63. The index had been up about 0.7% at its intraday peak at 7,169.80. However, a downdraft in the biotechnology sector, as measured by the iShares Nasdaq Biotechnology ETF down more than 1%, and mainly a drop in Celgene Corp. pressured the tech sector.
On Friday, the Dow S&P 500 and Nasdaq Composite all finished little changed for the session and in the red for the week.
The Dow is on track for a monthly rise of 1.1% as of Friday’s close, cutting its year-to-date loss to 1.4%. The S&P is up 0.9% in April, and down 0.3% in 2018, and the tech-laden Nasdaq has tacked on 0.4% return this month, with a year-to-date advance of 2.6%.
European stocks closed mostly higher, while Asian markets closed with gains.
Gold futures were lower in midday trade while oil futures turned higher, while the ICE U.S. Dollar Index advanced, putting it on pace for the best month since February of 2017. (Source: MarketWatch)
Stock in Focus: Riot Blockchain Inc (NASDAQ: RIOT)
Riot Blockchain Inc (NASDAQ: RIOT) has grabbed attention from the analysts when it experienced a change of -2.94% in the current trading session to trade at $7.27. A total of 196,753 shares exchanged hands during the intra-day trade contrast with its average trading volume of 1.51M shares, while its relative volume stands at 0.26. 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, Riot Blockchain Inc (NASDAQ: RIOT) stock is found to be 8.37% volatile for the week, while 9.85% volatility is recorded for the month.
The stock has a market cap of $98.79M and the number of outstanding shares has been calculated 13.19M. Based on a recent bid, its distance from 20 days simple moving average is 4.47%, and its distance from 50 days simple moving average is -13.29% while it has a distance of -29.49% from the 200 days simple moving average. The company’s distance from 52-week high price is -84.26% and the current price is 139.77% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 47.47 together with Average True Range (ATR 14) of 0.67.
Past 5 years growth of RIOT observed at 51.80%, and for the next five years the analysts that follow this company is expecting its growth at 20.00%. The stock’s price to sales ratio for trailing twelve months is 493.97 and price to book ratio for the most recent quarter is 1.63, whereas price to cash per share for the most recent quarter are 2.36. Its quick ratio for the most recent quarter is N/A. Analysts mean recommendation for the stock is 3.00. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
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