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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 (4422)	4/14/2000 11:23:00 AM
From: fut_trade	Read Replies (1) \| Respond to of 7434

...consideration of Sectors The list of SPX stocks by sector is available here spglobal.com For the moment, I think sector analysis should be considered an independent project from market cap analysis. I think they give two different views on the market. I think sector analysis should be easier to do. I think I have an idea for the market cap analysis. I think all 500 stocks should be used, and only two days of data - the close and yesterday's close. That way the MA of Beta is removed from the analysis. Three groups would then be formed: 1) high Beta > 1.02; 2) low Beta < 0.98; 3) neutral 0.98 < Beta < 1.02. One would then add the market caps in each group: H = sum of market caps for the high Beta group, L = sum...low Beta group, N = sum...neutral Beta group. H, L, and N would then be normalized by dividing each by (H+L+N). Thus for each day one has a set of H, L, and N values. Any moving averages would then be done directly on these values and not the Beta values. This would eliminate some of the problems I mentioned before regarding selection. A breakout of H would be bullish. A breakout of L would be bearish. And a breakout of N would indicate a directionless market. Large values of both H and L would indicate wild swings in the market.