Volume Moving the Tape -0.11% For S&P 500 Financials Sector SPDR (XLF)

Financial Services ETFs Still Worth a Look

Wade G W & Inc. decreased its position in shares of SPDR S&P 500 ETF Trust (NYSEARCA:SPY) by 2.8% during the 3rd quarter, according to its most recent disclosure with the SEC. There may be times when a particular stock might be flying under the radar, but is usually only a matter of time before someone catches on.

Seasoned investors are often on the lookout for a value name with solid upside. Different time periods may be used when using the RSI indicator. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal.

Compass Diversified Holdings's Williams Percent Range or 14 day Williams %R now sits at -17.39. A reading between 0 and -20 would point to an overbought situation. On the other end of the spectrum, a younger investor with a longer time horizon might be able to search for stocks with a higher potential for growth that may involve much more risk. The RSI oscillates on a scale from 0 to 100. Quantx Risk Managed Multi-Asset Total Return ETF (QXTR)'s Williams Percent Range or 14 day Williams %R now sits at -32.35.

Deep diving into the technical levels for Compass Diversified Holdings (CODI), we note that the equity now has a 14-day Commodity Channel Index (CCI) of 118.99. On the flip side, an RSI near 0 may signal weaker momentum. The Williams %R was developed by Larry Williams. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book "New Concepts in Technical Trading Systems".

Currently, the 14-day ADX for S&P 500 Financials Sector SPDR (XLF) is sitting at 18.86. Many technical analysts believe that an ADX value over 25 would suggest a strong trend. Toronto Dominion Bank now owns 2,530 shares of the exchange traded fund's stock valued at $150,000 after buying an additional 7,400 shares during the last quarter. Alternately, if the indicator goes below -80, this may point to the stock being oversold. After a recent check, S&P 500 Financials Sector SPDR's 14-day RSI is now at 62.10, the 7-day stands at 59.66, and the 3-day is sitting at 59.94. A value of 25-50 would support a strong trend. In general, a rising ADX line means that an existing trend is gaining strength. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend.

For further review, we can take a look at another popular technical indicator. In terms of moving averages, the 200-day is now at 25.12, the 50-day is 27.09, and the 7-day is resting at 28.03. Once the decision is made that the company is a good fit for the portfolio, it may be wise to assess whether or not current conditions and price levels indicate proper levels for share purchase. One of the more popular combinations is to use the 50-day and 200-day moving averages. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.

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