Consumer Finance industry
Monitor and predict the growth prospects and potential risks of the Consumer Finance industry by examining the financial and macroeconomic factors affecting it and the latest Consumer Finance news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Consumer Finance updates and get full access to MacroVar advanced analytics of Global Financial Markets, Economies and Financial Risk.
Click to explore the factors and the financial models used by MacroVar to analyze the Consumer Finance industry trend, growth prospects and risks.
Consumer Finance industry Markets
Consumer Finance industry News
Consumer Finance industry Analysis
MacroVar monitors the performance, risk, trend and momentum of the Consumer Finance industry by examining the stock and credit performance of major Consumer Finance companies across the US, Europe, Eastern Europe and Asia Pacific. Consumer Finance Stock performance is monitored by analyzing STOXX equity indices of major Consumer Finance companies while Consumer Finance credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Consumer Finance high yield corporate bond market.
MacroVar also monitors fundamental indicators closely linked to the Consumer Finance sector published monthly including analysis of sector specific PMI indicators, components of Manufacturing & Services PMI and Economic Sentiment Indicators analysis.
MacroVar also monitors other factors closely related to the Consumer Finance industry like closely related financial markets or macroeconmic indicators.
MacroVar estimates the following signals:: Consumer Finance momentum, Consumer Finance trend, Consumer Finance oscillator, Consumer Finance RSI and Consumer Finance returns.
Consumer Finance industry Description
The subsector of Consumer Finance includes Credit card companies and providers of personal finance services such as personal loans and check cashing companies.
Consumer Finance industry MomentumMomentum is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.
MacroVar Consumer Finance momentum signal ranges from -100 to +100. The Consumer Finance momentum signal is derived as the mean value from 4 calculations for the Consumer Finance . The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Consumer Finance return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1. Consumer Finance momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Consumer Finance momentum signal moves from positive to negative value or vice-versa.
Consumer Finance industry trendConsumer Finance trend signal ranges from -100 to +100. Consumer Finance trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Consumer Finance Closing price vs Consumer Finance moving average (MA) calculation: If Consumer Finance is greater than Consumer Finance MA value is +1, else -1, 2. Consumer Finance Moving average slope calculation: if current Consumer Finance moving average is higher than the previous MA, Consumer Finance upward slope +1, else -1
Consumer Finance trend model can be used as a trend strength indicator. Consumer Finance trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Consumer Finance trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The Consumer Finance 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Consumer Finance is in an uptrend when Consumer Finance price is higher than the 52-week moving average and the Consumer Finance 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the Consumer Finance oscillator and Consumer Finance RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
Consumer Finance industry oscillatorThe Consumer Finance oscillator estimated by MacroVar is the z-score of the currentConsumer Finance price versus Consumer Finance 1-year simple moving average price. The formula for the Consumer Finance oscillator is:
Consumer Finance oscillator = (Current Price – 250 trading days Consumer Finance simple moving average price) / (250 days Consumer Finance price standard deviation)
Consumer Finance oversold conditions
Consumer Finance is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Consumer Finance is oversold it is often due for a rebound. Values of the Consumer Finance oscillator lower than -2.5 signify oversold conditions. It must be noted that the Consumer Finance oscillator must be analyzed ibn conjunction with the rest ofConsumer Finance quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the Consumer Finance RSI.
Consumer Finance overbought conditions
Consumer Finance is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Consumer Finance is overbought it is often due for a correction. Values of the Consumer Finance oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Consumer Finance quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.
Consumer Finance RSI indicatorThe RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when Consumer Finance is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringConsumer Finance uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.
Consumer Finance industry returnsMacroVar calculates Consumer Finance returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:
Consumer Finance returns = (Consumer Finance Closing Price – Consumer Finance Previous Price)/(Consumer Finance Previous Price)