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Hi John,
I don't know if the following is the Dr. Clive post he was referring to, but
it's interesting nonetheless. (Hopefully he won't mind the repost)
Incidentally, the part on Group momentum is near the bottom, so don't give
up too soon.
Dick
***************************************************
Relative Strength is one of the most important elements of equity
investment.
Go to <equis.com> and scroll to the very bottom of the small window on
the extreme left.
Click the green tab labeled 'Formulas'. Look for 'Comparative Relative
Strength' and you will find all the data you need to construct relative
strength charts for single stocks and composites plus how to perform an
Exploration on them.
There is a second method of constructing relative strength which I have
developed using a comparative tabular format. This is based on the
brilliant work of James Dines in his 600 page treatise on technical
analysis in 1972. He formatted a momentum table for all sectors and
watched the relative movement of the sectors up and down the table in
relation to their momentum value.
It sounds complicated but isn't. Try it. Calculate the momentum for
several sectors, stocks, metal prices or whatever. Sort them in value
highest to lowest and watch their week by week relative movement up and
down the table.
I have adapted this to trading futures on a daily basis by a table of
the various futures markets from Palladium thro DJ indexes to world
markets. This shows me where I should be operating. It signals a switch
from equities into currencies or precioues metals or into base metals or
bonds or softs. Ensure that you always use a constant $ database or the
currency factors will distort the results.
Relative strength is certainly one of the most important elements of
techanalysis.
Regards to all.
Dr. Clive Roffey
-----Original Message-----
From: John Sellers <ay286@xxxxxxxx>
To: 'C. Roffey' <ancliff@xxxxxxxxxxxx>
Cc: 'Cyberspace User Group' <metastock-list@xxxxxxxxxxxxx>
Date: Friday, November 28, 1997 7:57 AM
Subject: RE: Updated Major Index and Sector Charts Posted
If you still have a copy in your computer describing your method of sector
rating analysis I would enjoy reading it if you could share it again with
the group. I am in agreement with this line of thought that it is very
helpfully to stock selection and also to periods of time when one should
probably exercise patience as you indicated recently in your letters.
-----Original Message-----
From: C. Roffey [SMTP:ancliff@xxxxxxxxxxxx]
Sent: Friday, November 28, 1997 1:42 AM
To: chipa@xxxxxxxxxxxxxxx
Cc: metastock-list@xxxxxxxxxxxxx
Subject: Re: Updated Major Index and Sector Charts Posted
I have been using a sector rating table successfully since 1976.
I detailed in a previous posting how this was calculated. I used to perform
a visual analysis but found this to be far too time consuming.
Equis recently sent me a sector rating analysis offered by Bollinger which
appears to have similar ideas to mine.
I firmly believe that sector analysis is an absolute pre-requisite to stock
selection. Keep up the good work.
Regards
Dr Clive Roffey
At 09:24 PM 27-11-1997 -0800, you wrote:
>I've updated the major index and sector charts I posted last week and
>have reorganized them into a unified, maintainable web site.
> http://coolhistory.com/ChipsCharts
>
>I've reorganized the S&P Sector charts to reflect the "Sector
>Rotation" theory of the business cycle. I am including a summary of
>strong and weak sectors at the top of that page for easy viewing of
>where I think we are in the cycle (Entering Late Contraction, BTW).
>
>I've also added a FAQ page that I hope will be of value to others.
>
>Please let me know what you think,
>Chip
>
>
>
>
>_________________________________________________________
>DO YOU YAHOO!?
>Get your free @yahoo.com address at http://mail.yahoo.com
>
>
>
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