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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 671.40-1.1%Dec 17 4:00 PM EST

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To: Haim R. Branisteanu who wrote (5034)1/30/1999 7:36:00 PM
From: donald sew  Read Replies (2) of 99985
 
Haim and Larry,

>>>>> , I was bouncing an idea around regarding the averages, mostly SPX and OEX who have AOL, MSFT, INTC CSCO in them <<<<<<

It would be hard to calculate since I believe its based on market cap.

The easiest way is to just compare 2 periods of time when they were at the same level in the index. Lets say we used the peak of last JULY when the spx was at 1200 and now.

If the index is based on market cap, we first need to determine what percent those 4 stocks were of the index for 3 time periods:
1) Julys peak around 1200
3) a recent time the spx was around 1200(end NOV)
4) and now
Then just take those percentages and and apply inversely to the appropiate stock levels.

It wont be exact but should give a fairly accurate comparison. One could mathematically argue that we would need to also include the change in the price of the individual issues, but since it is already calculated into the market cap, I feel there is no need.

Seeya
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