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Vignesh,
I have not heard of the software you refer to -
Trends. A URL would be welcome.
If I am not mistaken, the number of
outstanding shares changes with the deliveries effected during the day too.
So, construction of an index accurately is a
continuous process and is better left to professional indices service
providers.
For our cursory purposes, just an average of the
closes and the volumes would do.
E.g., pharmaceutical companies the world over are
considered to be a defensive sector, and we can always eyeball a chart of the
Exchange Index with a Pharma Index to observe the co-movement, to anticipate
trend changes in the main Index.
It can also be used to target which industry
sector should outperform against another sector. The index can be as simple or
as complex as you want. Usually the top five companies in each sector should
suffice.
We can also drill down each sector to its
more "finer" variations. Like the pharmaceuticals group can be broken down to
bulk drugs, biotech, otc, formulations, specialised medicines etc ... the list
can be as specific as you want to determine.
After all, our purpose is not to run a
specialised index service. Our objective is only to determine which sector would
outperform the other.
My very humble opinion.
DusantChief Architect<A
href="">http://www.candlestrength.com/
<BLOCKQUOTE dir=ltr
>
----- Original Message -----
<DIV
>From:
Vignesh
Eswar
To: <A
title=equismetastock@xxxxxxxxxxxxxxx
href="">equismetastock@xxxxxxxxxxxxxxx
Sent: Tuesday, July 20, 2004 10:22
AM
Subject: RE: [EquisMetaStock Group] Re :
composite securities
<SPAN
>Thanks. That was
useful Dusant. For making an index weighted by
market cap I suppose one can extend this further by multiplying the close of
each share with the number of outstanding shares and then divide by the sum of
weights. Pls correct me if I am
wrong.
<SPAN
>
<SPAN
>(security("c:\Data
Directory\xyz",c*os1) +<FONT
face="Courier New" size=2><SPAN
><SPAN
class=GramE>security(<FONT
face="Courier New">"c:\Data Directory\xyx",c*os2)
+<FONT
face="Courier New">security(<FONT
face="Courier New">"c:\Data Directory\xxz",c*os2)
+<FONT
face="Courier New">security(<FONT
face="Courier New">"c:\Data Directory\yyz",c*os4)
)/os1+os2+os3+os4 <BR
><FONT
face=Arial color=navy size=2><SPAN
>
<SPAN
>Since number of
outstanding shares do not change often, IS there some way to maintain them as
a database that can be referenced by the formulae? Can you suggest a way to
code this? TRENDS, the EOD charting package from Reliable
Sw, has an excellent module for building
indices.
<SPAN
>
<SPAN
>
<SPAN
>Regards,<FONT
color=navy><SPAN
>
<SPAN
>Vignesh
Eswar<SPAN
>
<SPAN
>Trade
Well. Trade Wise.
<SPAN
>-----Original
Message-----From: hormuz
maloo [mailto:hormuzmaloo@xxxxxxxxx] <SPAN
>Sent<SPAN
>: 19 July 2004 11:08<SPAN
>To:
equismetastock@xxxxxxxxxxxxxxx<SPAN
>Subject: [EquisMetaStock Group] <SPAN
class=GramE>Re : composite securities
<FONT face="Times New Roman"
size=3>
<FONT face="Courier New"
size=2><FONT
face="Courier New">Thanks for the tip, Dusant.<FONT
face="Courier New">Seems like just what I was looking
for.Incidentally, could not find
any reference to thesecurity()
function in the metastock manual. Are there<FONT
face="Courier New">some more functions like this which are not listed
inthe manual and is there some
place where can I find alist of
them.<FONT
face="Courier New">Regards,<FONT
face="Courier New">HormuzPS:
Larry, thanks for the tip on HOLDRS, but I am<FONT
face="Courier New">based in India. Am sure it will help when I
graduateto trading stocks in the
US. <FONT
face="Courier New">-----------------------------------<FONT
face="Courier New">Lionel,I used
the word "composite" loosely, and not as a word<FONT
face="Courier New">out of the <FONT
face="Courier New">Metastock classification.<FONT
face="Courier New">It is true that you can create an indicator using
thesecurity()
<FONT
face="Courier New">function.Let
us say you want to create an index of the<FONT
face="Courier New">pharmaceutical companies. <FONT
face="Courier New">Choose 4 of the top traded pharma stocks
andadd/average their closes
in this
manner.(security("c:\Data
Directory\xyz",c) +<FONT
face="Courier New">security("c:\Data Directory\xyx",c)
+security("c:\Data
Directory\xxz",c) +<FONT
face="Courier New">security("c:\Data Directory\yyz",c)
)/4That is what I meant by a
composite.<FONT
face="Courier New">DusantChief
Architect<FONT
face="Courier New">
<FONT
face="Courier New">__________________________________<FONT
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