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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 694.04+0.7%Jan 9 4:00 PM EST

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To: Rock_nj who wrote (48754)5/1/2000 1:35:00 AM
From: miklosh  Read Replies (3) of 99985
 
No wonder. The chart you present is linear along its y axis, so the growth rate will appear parabolic at a glance. It needs to be log scale in order to present rate of growth expressed as a percentage.In other words, the difference between 100 and 200 along the the vertical axis should be the same as the distance between 10,000 and 20,000, since both cases represent a 100% rise.

This chart presents a realistic picture of the naz's true rate of growth. finance.yahoo.com^IXIC&d=my

Notice that from naz 400 right up to last Fridays close, the RATE of growth is actually fairly linear. If you were to superimpose a straight line from 400 to 4000 , you would not see too much divergence on either side of the line.The slope does however pickup from 3-5k. And there is a bias toward accelerating growth over time, which is shown by the slope gradually increasing.

If all this is obvious to you, my apologies. With all due respect, I just do not want anyone to be mislead by the magnitude of growth that the graph that you presented implies.

regards
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