Sunday, May 22, 2016

Ranges Verses Vwap -

This Current Month has had Large Price Range,common in and around earnings season.I took a look at where vwaps were for the current month of some stocks I commonly follow and noticed something worth taking a more in depth look at. After doing cocktail napkin analysis, I thought it was worth exhibiting.

                   MONTHLY    RANGE             MONTHLY   VWAP          CURRENT***

SPY            208.54-202.78    *5.84                     205.69                             205.84
QQQ           107.49-104.4      *3.09                     105.85                             106.47
IWM           113.51-107.99    *5.52                     110.6                                110.79
AAPL           95.9-89.47        *6.43                      95.22                               93.13
AMZN         722.45-656        *66.45                   692.47                              702.8
BIDU           185.33-158.38   *26.7                     170.63***                        170.05***
FB                121.08-114.8      *7                         118.49                               117.35
NFLX           93.28-85.74       *7.54                      90.09                                 92.49
TSLA           243.19-203.66    *39.54                   216.03                              220.28

   So I found it really interesting that there have been large ranges,indecision and uncertainty but one thing IS certain, Vwap is an Excellent variable to be aware of. In this case BIDU is the clear cut winner, with IWM,SPY being close seconds,with the rest not far behind.The Monthly Vwap starts getting more important to know about 1/2way through.(2,3rd weeks). As the month progresses the Vwap will change less,barring any earnings smack in the middle. When 50% of the month is already in the books, you can start doing the math to see how much volume would have to trade to move the Vwap from Xprice to Zprice both up or down. But that will be in another quick study.
    Everybody's busy so I try to keep it brief, use the above study as you will-


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