CME Group Inc. provides a derivatives marketplace. Co. enables clients to trade futures, options, cash and over the counter (OTC) markets, optimize portfolios, and analyze data. It exchanges offer a range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. It offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates central counterparty clearing provider, CME Clearing.
When researching a stock like CME Group, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from CME Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for CME stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the CME 200 day moving average ("CME 200 DMA"), while one of the most popular "shorter look-backs" is the CME 50 day moving average ("CME 50 DMA"). A chart showing both of these popular moving averages is shown on this page for CME Group. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the CME 200 DMA and the CME 50 DMA, we get a moving average convergence divergence indicator ("CME MACD"). The CME MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis