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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket.

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To: Monty Lenard who wrote (400)4/18/1999 4:27:00 PM
From: James F. Hopkins  Read Replies (1) of 2103
 
HI Monty; I'm wanting to do some home work on the spiders,
Back testing and all, so let me know when the Tax rush is over
with you as what I want to do is more than I'm up to doing on
My own..
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I want to break down the Spiders the same way the Amex has them,
then ( back test them ) looking at the change in market cap over a year or two of each one..and see how and when they crossed swords in the past and what other Signals were sent.
I can get the make up, but the back testing I don't think I can
do. There will be some error built in ( as some of the issues
were likely not in them going back ) but not enough hurt real
bad as that will mostly average out between them.
I also want to RATE each Spider via market cap/stocks = average
marketcap per stock.
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That's the core premise , then apply news and other conditions
to taht. One sector will likely show up with an edge CAP wise,
I'm sure it will as I made some rough notes when they first
came out..I want to include the qqq in the mix
with her in we will have 10 sectors to pit against the S&P.
I think if we get it right, and play them right
it will beat stock picking all to hell in the long run,
with qqq looking to be the most lucrative volatility wise.
Jim

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