Monitor and predict the growth prospects and potential risks of the Internet industry by examining the financial and macroeconomic factors affecting it and the latest Internet news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Internet updates and get full access to MacroVar advanced analytics of Global Financial Markets, Economies and Financial Risk.
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Internet industry Markets
Internet industry News
Internet industry Analysis
MacroVar monitors the performance, risk, trend and momentum of the Internet industry by examining the stock and credit performance of major Internet companies across the US, Europe, Eastern Europe and Asia Pacific. Internet Stock performance is monitored by analyzing STOXX equity indices of major Internet companies while Internet credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Internet high yield corporate bond market.
MacroVar also monitors fundamental indicators closely linked to the Internet 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 Internet industry like closely related financial markets or macroeconmic indicators.
MacroVar estimates the following signals:: Internet momentum, Internet trend, Internet oscillator, Internet RSI and Internet returns.
Internet industry Description
The subsector of Internet includes companies providing Internet-related services, such as Internet access providers and search engines and providers of Web site design, Web hosting, domain-name registration and e-mail services.
Internet 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 Internet momentum signal ranges from -100 to +100. The Internet momentum signal is derived as the mean value from 4 calculations for the Internet . 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. Internet 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. Internet momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Internet momentum signal moves from positive to negative value or vice-versa.
Internet industry trendInternet trend signal ranges from -100 to +100. Internet 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. Internet Closing price vs Internet moving average (MA) calculation: If Internet is greater than Internet MA value is +1, else -1, 2. Internet Moving average slope calculation: if current Internet moving average is higher than the previous MA, Internet upward slope +1, else -1
Internet trend model can be used as a trend strength indicator. Internet trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Internet trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The Internet 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Internet is in an uptrend when Internet price is higher than the 52-week moving average and the Internet 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 Internet oscillator and Internet RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
Internet industry oscillatorThe Internet oscillator estimated by MacroVar is the z-score of the currentInternet price versus Internet 1-year simple moving average price. The formula for the Internet oscillator is:
Internet oscillator = (Current Price – 250 trading days Internet simple moving average price) / (250 days Internet price standard deviation)
Internet oversold conditions
Internet is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Internet is oversold it is often due for a rebound. Values of the Internet oscillator lower than -2.5 signify oversold conditions. It must be noted that the Internet oscillator must be analyzed ibn conjunction with the rest ofInternet 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 Internet RSI.
Internet overbought conditions
Internet is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Internet is overbought it is often due for a correction. Values of the Internet oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Internet 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.
Internet 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 Internet is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringInternet 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.
Internet industry returnsMacroVar calculates Internet returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:
Internet returns = (Internet Closing Price – Internet Previous Price)/(Internet Previous Price)