Of the 1646 stocks analyzed on Tuesday, 1388 advanced, 244 declined and the remaining 14 were flat on the day. Gains across the stocks averaged 1.57% on volumes 13.6% greater than the day previous. Gains across the capitalizations averaged 1.45%, 1.55% and 1.89% for large-caps, mid-caps and small-caps, respectively. Friday’s activity corrected the imbalance that found stocks in overbought territory. As a result of the action over the past two days 34.39% of stocks have reentered this domain. A further correction may come soon.
Analysis has revealed that with a buy date of October 22 and a sell date of February 22, investors have benefited from a total return of 318.05% over the last 10 years.This scenario has shown positive results in 9 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of October 23 and a sell date of December 31, producing a total return over the same 10-year range of 283.79% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 69.98%.
Comments:
Barrick Gold, another gold stock that is influenced positively by seasonal tendencies that range from the end of July into October.The stock gains over 8% in this period as the entire gold industry rallies to positive returns.Gold mining stocks have just started to break out of the downward pressures that pushed stocks lower as a result of deflationary comments from the fed last week.Barrick is one of the few fairly valued mining stocks according to its P/E multiple, currently sitting at 17.2.The P/E ratio for the industry is an overwhelming 53.8.Technically, the stock has yet to reveal a definitive bottom.Technical indicators will confirm.The stock has been in an upward trend for over a year and analysts remain enthusiastic about its long-term prospects, listing the stock as a "buy".Price action as of recent is currently below the expected range that finds bounds of 43.85 to 47.44, suggesting that a new downward trend is being formed or that a rebound is expected to pull it back in line.Best guess is on the latter.
News Headlines for BARRICK GOLD CORP COM NPV (ABX.TO)
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Disclosure: Mr. Vialoux does not own securities mentioned in this report.
Disclaimer: Comments and opinions offered in this report at EquityClock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities.
Data offered in this report is believed to be accurate, but is not guaranteed.
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