4/13/2018 Markets gap up on bank earnings, but sell off in the afternoon due to the banks.

Fun Fact #26

Did you know that stocks can have negative beta? Beta measures how volatile a stock is compared to the overall market. The indexes have a standard Beta value of 1. If a stock is more volatile than the index, the Beta value will be greater than 1. If a stock is less volatile than the market, it will have a Beta between 0 and 1.

For example, AMD has a beta of 3.28, meaning that for every 1% the market moves up, AMD is expected to move up 3.28%. This also applies for when the market moves down. 

Negative beta means that the stock is expected to move up when the market moves down and down when the market moves up. An example of a stock that has a negative beta is ABX, a gold related stock.


Market Stocks 4_13_2018.PNG

I added Microsoft (MSFT) to the list above because it is a large component of QQQ. NFLX hit my 315 target this morning on the gap up, but failed to hold that level by the end of the day. Micron Technology (MU) reached a high of 53.5 intra-day, which was 50 cents off my target. Unfortunately, MU closed quite a bit off its’ high of the day. 

QQQ weekly 4_13_2018.PNG

Above is the weekly chart of QQQ. We’ve closed above 160, which is the crucial price level for the bulls to hold. The weekly chart is looking really good, but political uncertainty could result in a rapid move downwards. I’m still bullish with a price target of 170 in the next couple weeks. 

Tomorrow I might post a monthly chart of QQQ along with some weekly charts of the other indexes/stocks. 

Have a great weekend!


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