Outtake from Link....What Does This All Mean? The Arms Index emphasizes volume. In the first example, there was twice as many Advancing Issues and twice as much Advancing Volume. Therefore, 67% (2 to 1 is equal to a 67% and 33% split) of all NYSE issues were advancing, and subsequently 67% of all NYSE volume was with Advancing Issues. For the Arms Index to give a bullish reading, the Arms Index would expect there to be more volume poured into the advancing stocks, such as in the last example where 75% (3 to 1 is 75%) of all NYSE volume was in Advancing Issues.
Nevertheless, a person could legitimately question why 67% of all NYSE issues being gainers and 67% of all volume being with winning issues could be considered neutral.
The complexity is that using the Nasdaq instead, we define the underlying Potential Volume from within this data set. ThereAfter;
All prices are artifacts of Prevailing Systems Intent.
The Nasdaq Market Float Since 1997 The Math of the Market
Mon/Yr..Trade Days..# Compy..TotlVol...AverD Vol
Jul-97. 22.....6388... 14,659,052,996.. 666,320,591
Mar-98. 21.....6143... 17,694,084,535.. 842,575,454
Jul-99. 21.....5400... 21,249,135,986.. 1,001,863,618
Jan-00. 20.....5233.…. 33,859,912,232.. 1,692,995,612
Jul-03. 22.....3671... 38,984,813,325.. 1,772,036,969
Jan-04. 20.....3560... 46,649,555,963.. 2,332,477,798
Jul-05. 20.....3441.…. 33,681,072,462.. 1,684,053,623
Apr-06. 19.....3384... 40,846,016,058.. 2,149,790,319
Jul-07. 21.....3348... 46,780,102,818.. 2,227,623,944
Jan-08. 21.....3299... 56,616,100,438.. 2,696,004,783
Nov-08. 19.....3199... 42,460,731,579.. 2,234,775,346
Jul-09. 22.....3024... 48,456,198,558.. 2,202,554,480
Apr-10. 21.....2982... 53,597,263,077.. 2,552,250,623
May-10.........2977....57,205,068,222.. 2,860,253,411* Flash Crash 5-6 4.5bil 2943companies
Sept-10........2914....
Nov-10.........2941....42,183,589,365..2,008,742,351
Dec-10........2900....
Mar 2011....2914..40,289,690,615..ADV 2,120,510,032
May 2011 ...2881 43,314,364,851 ADV 2,062,588,802
July 11...... .2857 38,302,934,478...ADV 1,915,146,724
Oct 2011.....2842 44,691,480,4311 ADV 2,128,165,735
APR 2012....2804 34,686,739,001 ADV 1,734,336,950 |
