is DGT a good buy today?
is DGT a good buy today?
Answers
2183 points
ChaosNantuko answered 2 years ago …
For the short term, I'd say no. Its falling right now though, having broken some strong support at 76, and almost at its August lows. I would recommend waiting. If it starts moving up again, and it moves up past 77.00, then I'd consider buying, but until then, I think its more likely to continue falling then it is too turn around
For the long term, i'd still say no. Looking at a 10 year chart comparing DGT to an overall market index (SPX), the charts are almost exactly the same, with the SPX having a slight advantage. Considering it mirrors the market almost perfectly, i would ignore this one and look for something that will beat the market.
508 points
John answered 2 years ago …
I would not go near this stock. The latest sell-off comes on significant volume. The ETF has been trading higher on light volume and lower on heavy volume. The up days seem like profit taking from shorters.
They just broke through support around 75. TRhe EMA 10 day just fell through the 50 and 200. The stock is now trading below their moving averages a very bearish indication.
This is a falling knife, wait for the momentum to change and the moving averages to turn below the ETF chart treading upwards.
The RSI is in a downward trend looking to break 30 any minute now.
Mac is also in a down trend!
Look at this chart 1yr DGT
http://stockcharts.com/h-sc/ui
not pretty picture.
This ETF is comprised of big name staple stocks and high in financials. These are the tsocks which are bringing the market down. If you believe the market is going to correct further you do not want to own this ETF.
I would watch closely and make your move when the trend begins to change.
