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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (44695)	11/23/1999 10:09:00 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Hi Bill; What I call my DVI is a ( dollar volume index ) I make up in a paper portfolio. I do this with several indexes using only the "most popular traded stock in dollars" in that index. First I take the stocks in the index and their ( 3mo average volume ( times ) their price) to find out which one trade the most Dollars in 3 mo. I normally only use the top 12. This is were the action is, I also weight them by that dollar volume, from then on it's much like any other TA , except I compare that most Dollar active to the index itself. Using the 3 month average filters out the short term anomalies, yet it is a short term indicator. I keep an eye on the change and the volume just like you would on any index. ----------------------------------- What I found is this indicates the money flow better than say a plain market cap weighted index does. My volume is looked at in Dollars not shares..IT's also easy to see during the day if "these normally most popular traded stocks" have a good A/D line. I have separate ones for the S&P and NDX , and the Banks and found a dozen in each does nicely. The rest of the market may be going the opposite way , but in time it will follow the most popular ones. There are times it don't signal very good, but if and when it gives a strong signal it's never wrong. ( like it may not always be useful "but when it is" you can count on it ) I have tried to get the jump on it several times, and lived to regret it. So I have just about given up betting against it just because every thing else looks good or bad, so while I may not use it exclusively I've learned its one not to fight. Jim