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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Tom Pulley who wrote (15476)	12/10/2002 10:23:26 PM
From: James F. Hopkins	Respond to of 19219

Tom ; the DVI is my own Dollar Volume Index; Message 18293128 while that link may make it look clear as mud, it's about the best I know how to explain it. I encourage people to make up their own, and keep them updated. I use yahoo to monitor them during the day. ------------ It follows the money flow of the most Dollar traded stocks, I try to keep apples to apples, and run 3 of them. one for the NDX, another for NYSE stocks which are in the S&P500 and a small one for the SOXX. ----------- They need to be updated about once a month or so to keep the most Dollar traded ones on top..and re weighted by their Dollar volume. --------- The thing is NOT in weighting by Market Cap, BUT by weighting Dollar Volume traded, Then comparing The DVI to the regular market cap index and look for the divergence. The DVI will out run the reg index when money flow is good, and fall behind when money flow slows. -------- You see sometimes the regular indexes can go up even if the dollars traded are falling, as a spike in thinner traded stocks can make a fool out of the index. Ie the spike last Friday didn't fool me as it was not shown in the DVI.. The run up Friday was just a few stocks spiking, but the DVI showed overall negative Dollar flow. ie Message 18307993 ---------- It's a bit of work making them up but worth it. I can't always update , like tomorrow I'll be gone, maybe a day maybe several my type of tug boat work is like that. <g> Good luck Jim