Pimco California Muni Income Fund III (PZC) shares under being placed under the lens today as the Twiggs Money Flow indicator, or TMF has trickled below the zero line, indicating downward momentum. Twiggs Money Flow Index is a technical indicator created by Collin Twiggs. It is derived from Chaikin Money Flow Index but uses true ranges instead of highs minus lows to prevent spikes due to gaps. It is also using a smoothing exponential moving average to prevent volume spikes to alter results. The exponential moving average is the one described by Welles Wilder for many of his indicators.
When Twiggs Money Flow Index moves above 0, players are accumulating and thus prices are subject to climb higher. When Twiggs Money Flow Index is below 0, players are distributing and prices are more subject to move lower. Divergences of Twiggs Money Flow Index indicator with prices give also solid signals.
Traders often employ unique systems when trying to beat the stock market. There are many different trading strategies or systems that can be used. New traders may find out very quickly that trading without a plan is a recipe for ruin. When starting out, it may require a lot of focus and dedication just to stay afloat. With more experience and hard work, traders may be able to eventually scoop up some of those profits that they were expecting when they started out. Some traders may have a few big wins right out of the gate. This may lead to overconfidence in the future if the proper precautions are not taken. Traders constantly need to be paying attention to everything that is going with the stock market. Moves can happen in the blink of an eye and without any notice. Being prepared to take a position at a moment’s notice can pay off big when the opportunity arises.
Taking a look at other technical levels, the 3-day RSI stands at 22.29, the 7-day sits at 33.47 and the 14-day (most common) is at 37.09. The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to measure the speed and change of stock price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific period of time. As a momentum oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI is closer to 100, this may indicate a period of stronger momentum. On the flip side, an RSI near 0 may signal weaker momentum. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book “New Concepts in Technical Trading Systems”.
Keeping an eye on Moving Averages, the 50-day is 9.70, the 200-day is at 10.06, and the 7-day is 9.48 for Pimco California Muni Income Fund III (PZC). Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.
Interested traders may be keeping an eye on the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. Pimco California Muni Income Fund III (PZC)’s Williams Percent Range or 14 day Williams %R currently sits at -100.00. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.
Another technical indicator that might serve as a powerful resource for measuring trend strength is the Average Directional Index or ADX. The ADX was introduced by J. Welles Wilder in the late 1970’s and it has stood the test of time. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. At the time of writing, the 14-day ADX for Pimco California Muni Income Fund III (PZC) is noted at 34.79. Many technical analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal.
Investors may use various technical indicators to help spot trends and buy/sell signals. Presently, Pimco California Muni Income Fund III (PZC) has a 14-day Commodity Channel Index (CCI) of -138.42. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.
Many new traders will jump right into the market without any concrete plan. They may be highly optimistic, but will soon realize that it takes more than optimism to secure profits in the stock market. Successful traders are usually good at having a backup plan for every trade. This may seem unnecessary to some, but when the harsh reality of a losing trade comes into the picture, it can be hard to rebound after taking a big hit. Rushing into trades to try and cover recent losses may also leave the trader on the outside looking in. Taking a rationalized approach may help the trader ride out the bumpy patches when they inevitably come.