How to Gauge Market Trend

The Swami Market Mode indicator shows you whether a security is in trend mode or swing mode. Green indicates an uptrend and red indicates a downtrend while yellow indicates trading within a range (i.e., swing mode). This is just one of many indicators offered through SwamiCharts that allow you to clearly see market conditions by presenting the indicator’s true meaning from a big picture perspective.

After previously posting about Human Genome Sciences, Inc (HGSI) I wanted to take another look and focus what can be learned from the Market Mode indicator.  As you can tell, beginning around mid-May, the indicator detected a downtrend that has been consistently in place till present time.  Looking back several years, the stock is now trading at such low enough levels that if the Market Mode were to recognize an uptrend it could lead to substantial price movement.

In a recent report, the company’s management says it is making good progress with the US launch of it’s flagship lupus medication, Benlysta, adding that it received approval earlier this month to market the drug in Europe and Canada.  However they added by explaining that revenue has declined primarily because in last year’s second quarter it recognized $19.1 million in upfront and milestone payments as part of an agreement with Novartis over an experimental hepatitis C drug called Zalbin.

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