Chapter X: Technical Analysis discovers the range of moods of investors toward MMM.

Sentiment Analysis based on Historical Prices and Volumes of MMM common stock.

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One commonly consulted gauge of the mood of the market for 3M Company is the Negative Volume Index. This modern version makes use of several enhancements added by Norman Fosback. The indicator is the proportion of the daily NVI as compared to the average daily NVI over the past year. The plot is orange below the unity line (neutral implication) and green above (bullish).

How to read the Calibrated NVI for 3M Company:

In its modern form, the NVI is an elegant indicator, but requires some care in interpretation. The orange plot (NVI less than unity) is not considered bearish because a lowering of the NVI is a natural tendancy under many market conditions. When the plot is in the green area, it indicates that prices are rising on low volume sessions, which is contrary to the normal condition. This can be a tip off to "accumulation behaviour" on the part of someone or some group in the market. The indicator seems most significant when prices are falling and the NVI is rising, which indicates a market that is "buying on the dips".

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Because the NVI operates over a somewhat longer time frame than most technical indicators, it is of interest to track it over a longer period to get a feeling for how it works. This chart for 3M Company covers the few years before the start of the chart at the top of the page.

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Values above the midline indicate that day traders have positive feelings toward MMM while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. 3M Company stock prices are shown in red.

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Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. 3M Company share prices are overlaid in red. This is an important indicator for market timing, as a change in direction of the volume line may happen before the price turns.

For Clients: More Market Sentiment Analysis of 3M Company

Influence of Investor Sentiment on MMM stock prices. Also, roadmap and Summary of most effective indicators:

Public Pages : More MMM Technical Analysis Chalk-Talk Subjects

MMM Price Forecasts

MMM Traditional Time Series Analysis

Momentum Investing

Multi-Spectral Analysis

Political Season Trends MMM

MMM Transaction Volume Trends

MMM Analysis of Short Term and Long Term Risk

MMM Calendar Seasonality

Back to MMM Index Page

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Next Chapter 1:

This look at 3M Company begins with a Classical Time Series Analysis of the historical stock prices, providing a vantage point over patterns that will be explored in greater detail in the following chapters.