Hi Lg; I also have tracked these stocks for two years or more,
But I'm not sure you got my idea,
the new twist is in the "weighting" via the average 3 mo Dollar Volume Traded instead weighting via market cap.
Like this puts more weight on AOL than MSFT , and more on Yhoo than
CSCO.
IT's not the way a sane person would weight stocks , but who
said the market is sane. It is the way the market "trades" them
and that weighting by Dollar Volume is what is uniqe about it, the results as a group then reflect a vastly different result of the up and down of the market. ( at times ) and the difference it makes to that end result by having them weighted to the Dollar Volume is like day to night, this is like a quantum leap in tracking the MONEY FLOW.
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Also they can be weighted via the daily volume
For interday trading the weight applied to each one can be dynamic,
sum the total DOLLAR volume of them all, after( volume x price of each stock ) and divide each stocks DOLLAR volume by the sum to get the percentage of weight for each stock, using a base multiplier of your own choice of total shares , these shares are then allocated to each stock as to it's dollar volume activity..
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I think about the days I saw the Advance Decline as positive
and the UP volume as positive , and the total market cap as
positive, Yet money was flowing out hand over fist and that
fact did not show up in any of the standard indexes or
market indicators. the reveres can be true also,
the A/D can lie, the Tick can lie, the Trin can lie the
market cap index can lie, but "dollar volume traded" if the stocks
are weighted as such don't lie, and it exposes the truth about the internals in one swoop.
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AS far as I know no one on Gods earth has "weighted" a group
of stocks this way. Take "any index" and reweight the stocks in
it this way, then compare the results of the two.
Well I'm not going to go on about this, I had reservations about
letting it out for free any way. But I wanted a time stamp on
the Idea of DOLLAR VOLUME WEIGHTING , just in case some one else
claims the idea was his.
What stocks are in it may depend on what sector or index you
wish to play, ie if your playing options on the internet
^dot index, take the same stocks and reweight them via Dollar
Volume , then compare the DOT index with your new one.
Same stocks; but now your looking directly at sentiment,
and if some MM taking advantage of low volume on one to
created a pop in the DOT index pulls a little tricky dicky
you knowing that water finds it's own level won't be faked out.
Jim
PS For the record note the exact timing
Message 10735328
Now actually that time stamp was about 10 min after I was
short, as I waited for conformation before coming on SI,
she ticked up one more time, BUT my index was already
telling me she was headed south I KNEW I had a good bet.
I don't post all my bets but I posted that one for
the record, as I could see the qqq hadn't fell, and I wanted
the time stamp to show I was short in Front of the fact.
I hate those "after the fact" I was right type post that don't
show the actual time stamp, and I try to avoid making any. |
