FEZ’s moving averages
On November 13, 2015, 42% of the portfolio holdings of the SPDR EURO STOXX 50 ETF (FEZ) closed above their 100-day moving averages as compared to 49% on November 12. There were no changes in the 50-day moving averages of FEZ’s holdings as compared to November 12.
51% of FEZ’s portfolio holdings closed above their 20-day moving averages on November 13 as compared to 55% on November 12. This falling trend indicates that in the short term, most of the ETF’s equity holdings have been avoiding an uptrend in the current scenario.
A stock’s moving average is its average price over a certain period. Moving average is a trend-following indicator. It’s also known as a lagging indicator, because it’s calculated based on past price performance.
The graph above shows the percentage of FEZ’s portfolio holdings that were above their 100-day, 50-day, and 20-day moving averages. The graph also shows a relative strength index analysis.
On November 13, 76% of FEZ’s portfolio holdings were in 30–70 relative strength index (or RSI) range compared to 90% on November 12. 1% of FEZ’s portfolio holdings had an RSI of above 70.
Also, 23% of FEZ’s portfolio holdings had an RSI of below 30 on November 13 as compared to 16% on November 12. This indicates that there was a sudden change in portfolio holding percentages in the oversold level.
RSI is a technical indicator used to determine the overbought or oversold status of a stock. If the RSI is above 70, it indicates that a stock is overbought. If the RSI is below 30, it indicates that a stock is oversold. Here, most of the portfolio holdings were in the 30–70 range, showing that the ETF was neither overbought nor oversold.
FEZ invests in large capitalization stocks such as Sanofi (SNY), Total (TOT), Banco Santander (SAN), Siemens (SIEGY), and Anheuser Busch (BUD). These stocks make up 5.0%, 4.8%, 3.4%, 3.1%, and 3.6%, respectively, of FEZ’s portfolio.
In the next part of the series, we’ll analyze FEZ and its top performers with respect to its volatility and mean return.