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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: sjemmeri who wrote (37088)	9/21/2000 2:35:56 AM
From: Doug R	Read Replies (1) \| Respond to of 79459

Steve, The Ratio draws its data from the S&P 500. There is a certain structural advantage in using the S&P due to the size of the sample vs. the naz 100 or the Dow 30. The periodic changes in the make-up of the 3 "major" indices causes a dependency on the powers that be who make the changes but the S&P's changes better reflect reality vs the DJIA changes IMO...and the naz remains locked into overly weighting tech stocks with that double counted volume method (ie...I sell 1K to you...you buy 1K from me and...2K was traded). So...it's probably best that the Ratio continue as is. There IS one mathematical concern that Bruce has voiced recently. If NO (zero, nada, nyet) stocks in the S&P, on one given day, produce data for the denominator...a "divide by zero" error will occur. It hasn't happened yet but the possibility does exist. We're currently hashing that possibility out. Doug R