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Strategies & Market Trends : Trading the SPOOs with Patrick Slevin! -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (4414)	4/14/2000 10:36:00 AM
From: fut_trade	Read Replies (1) \| Respond to of 7434

I need to give this market cap analysis more thought. What I would like to have is a measure of how many large-cap stocks are moving up (or down) at the same time. An indicator that measures the degree-of-harmony in the market. Some stocks may have upward or downward momentum while others may have just reached support or resistance levels and are in the process of turning. During a crash most of the stocks have downward momentum and show a high degree of harmony. At other times, some stocks are moving up while others are moving down or not moving at all, and thus the market would show a low degree of harmony. One may want to stay out of the market in the latter case. The two concerns are 1) which and how many stocks to analyze; and 2) how to design an indicator that reacts properly to the market cap weighting of the SPX - which at this time is extreme in that a small number of companies make up most of the SPX price. I should be logged onto SI from time to time over the weekend.