Investor’s Alert (Technicals Data Analysis) – Diana Containerships Inc (NASDAQ: DCIX)

U.S. market indexes were mostly lower Friday. The Dow Jones Industrial Average closed at 24,753.09 for a loss of -58.67 points or -0.24%. The S&P 500 closed at 2,721.33 for a loss of -6.43 points or -0.24%. The Nasdaq Composite closed at 7,433.85 for a gain of 9.42 points or 0.13%. The VIX Volatility Index was higher at 13.22 for a gain of 0.69 points or 5.51%.

For the week, the Dow Jones gained 0.2%, the S&P 500 gained 0.3% and the Nasdaq Composite gained 1.1%. Year to date, the Dow Jones has gained 1.05%, the S&P 500 has gained 2.63% and the Nasdaq Composite has a return of 7.75%.

A selloff in energy stocks led to broad market index losses on Friday as oil closed at new lows following negotiations of raised production. Meanwhile, several sectors posted gains. The technology-focused Nasdaq Composite gained 0.13%. In the S&P 500, consumer sectors stated gains with some strong earnings reports from retail companies over the week. Real estate led gains in the S&P 500 on Friday with a sector return of 0.48%, followed by consumer discretionary with a gain of 0.21% and consumer staples with a gain of 0.14%.

Economic reports affecting market trading included the following:

  • New orders for durable goods reduced -1.7% for the month.
  • The University of Michigan’s Consumer Sentiment Index reduced to 98.0.
  • The Baker Hughes rig count showed a boost of 11 rigs across North America with a total rig count of 1,140.

In small-caps, the Russell 2000 closed at 1,626.77 for a loss of -1.46 points or -0.09%. The S&P 600 closed at 1,004.64 for a loss of -0.46 points or -0.05%. The Dow Jones Small-Cap Growth TSM Index closed at 10,067.78 for a loss of -10.80 points or -0.11%. The Dow Jones Small-Cap Value TSM Index closed at 10,306.45 for a loss of -19.17 points or -0.19%. (Source: GuruFocus)

Hot Stock Analysis: Diana Containerships Inc (NASDAQ: DCIX)

Investors rushed to trade on Diana Containerships Inc (NASDAQ: DCIX) Friday, soon after a drastic change of 0.63% in the share price was observed and the stock become able to close its trade at $1.60. The stock becomes active when traders or investors changed hands with 3,477,958 shares contrast to the three-month volume average of 1.10M shares. The ratio between current volume and 3-month average value, also known as Relative volume was observed at 3.16, validating the stock’s In Play state.

Stock Technical’s & Performances to Explore:

Based on a recent bid, this stock (DCIX) was trading at a distance of -99.95% from 52-week high and 22.14% away from its 52-week low price. We observed -1.84% rate of return for a stock for the last 5-trading days, which was maintained for the month at 7.38%. Likewise, the performance for the quarter was recorded as -23.44% and for the year was -99.94%. The comparison of these above mentioned historical values gives an idea to investor whether the stock is ready to shift trend (up to down or down to up) or how the stock has recovered the losses or shed gains during its historical phase. For example, if stock’s weekly and monthly performances are positive as compared to year and YTD performance percentage also seems to decrease in comparison to the previous year performance, then one can say that the stock is bouncing back and may able to gain more and more in near future and vice versa. Although stock’s historical performances are key to consider, don’t invest (or not invest) based solely on it. It’s just one measure of value. As a serious shareholder, you need to look at plentiful factors that can assist you determine whether any given stock is a good investment.

Simple Moving Averages (SMAs) in Focus:

Moving averages is one of the key indicator and the most powerful tool used by traders. A simple moving average is easy to calculate, which allows it to be employed fairly quickly and easily. A textbook definition of a moving average is an average price for a security using a specified time period. The simplest form of a moving average, appropriately known as a simple moving average (SMA), is calculated by taking the arithmetic mean of a given set of values. For example, to calculate a basic 10-day moving average you would add up the closing prices from the past 10 days and then divide the result by 10. If a trader wishes to see a 50-day average instead, the same type of calculation would be made, but it would include the prices over the past 50 days and the same process goes on for 200 days.

Do SMAs Signal a Trend Reversal?

Based on a recent bid, this stock (DCIX) was trading at a distance of -0.34% from 20 days simple moving average, and its distance from 50 days simple moving average is 0.56% while it has a distance of -79.39% from the 200 days simple moving average. A moving average’s greatest strength is its ability to assist a trader identifies a current trend or spots a possible trend reversal. Moving averages can also identify a level of support or resistance for the security, or act as a simple entry or exit signal.

Stock’s Volatility Analysis:

Volatility is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns. It generally deals with the amount of uncertainty or risk about the size of changes in a security’s value. It can either be calculated by means of the standard deviation or variance between returns from that same security or market index. The Rule of thumb is higher the volatility, the riskier the security. A higher volatility means that a security’s value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security’s value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.

What about DCIX Stock’s Volatility?

According to finviz data, DCIX stock’s volatility for the week is measured at 7.48%, while for the month it is maintained at 12.14%.

An Eye on Beta Factor:

One gauge of the relative volatility of a specific stock to the market is its beta. A beta approximates the overall volatility of a security’s returns against the returns of a relevant benchmark (usually the S&P 500 is used). Presently, Beta factor for DCIX stock stands at 2.95. A beta of 1 indicates that the security’s price moves with the market. A beta of less than 1 means that the security is theoretically less volatile than the market. A beta of greater than 1 indicates that the security’s price is theoretically more volatile than the market. For example, if a stock’s beta is 1.2, it’s theoretically 20% more volatile than the market. Conversely, if an ETF’s beta is 0.65, it is theoretically 35% less volatile than the market. Therefore, the fund’s excess return is predictable to underperform the benchmark by 35% in up markets and outperform by 35% during down markets.

What Do Analysts’ Recommend?

Analysts mean recommendation for the stock is 5.00, (where 1 is Strong Buy and 5 is Strong Sell).

Disclaimer: Any news, report, research and analysis published on are only for information purposes. Stocks Pen (SP) 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 Stocks Pen; however, human error can exist.

Eric Clapton

Eric Clapton

I am Eric Clapton and has over 14 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

Leave a Reply

Your email address will not be published. Required fields are marked *