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Technology Stocks : Semi Equipment Analysis
SOXX 328.35+3.2%4:00 PM EST

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To: Sam who wrote (56759)7/1/2012 12:15:31 PM
From: Sam1 Recommendation   of 95683
 
The latest from Doug Short on ECRI's indicators and recession call:

Recession Status: DEFCON 3
businessinsider.com

Many charts and links are in the post, so I am not going to post it here. As well as this note at the end of the article:

Note: How to Calculate the Growth series from the Weekly Leading Index

ECRI's weekly Excel spreadsheet includes the WLI and the Growth series, but the latter is a series of values without the underlying calculations. After a collaborative effort by Franz Lischka, Georg Vrba, Dwaine van Vuuren and Kishor Bhatia to model the calculation, Georg discovered the actual formula in a 1999 article published by Anirvan Banerji, the Chief Research Officer at ECRI: The three Ps: simple tools for monitoring economic cycles - pronounced, pervasive and persistent economic indicators.

Here is the formula:

"MA1" = 4 week moving average of the WLI

"MA2" = moving average of MA1 over the preceding 52 weeks

"n"= 52/26.5

"m"= 100

WLIg = [m*(MA1/MA2)^n] – m

Read more: advisorperspectives.com
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