ES Journal Archive (2009 - 2010)

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Anyone can explain how the NYSE/NASDAQ adv-decl volume were negative and plunging the whole day while eminis were building a bottom and eventually rallied into the close?

How can this be?

Anyone with some adv-decl volume knowledge can shed some light on how this can be possible?

Bearish volume all day and the DOW rallied almost 100pts?
 
I am not the sharpest shank in the prison but the island gap looks in play. Need some immediate continuation like early July for confirmation, then it is big time break away down, as vicious as the move up from that July low. Tomorrow's close under 1082 would set up a huge gap down Monday, stay tuned.
 
Quote from fseitun:

Anyone can explain how the NYSE/NASDAQ adv-decl volume were negative and plunging the whole day while eminis were building a bottom and eventually rallied into the close?

How can this be?

Anyone with some adv-decl volume knowledge can shed some light on how this can be possible?

Bearish volume all day and the DOW rallied almost 100pts?
More...

Those are outdated measures as they no longer represent the indices themselves.

At best they can confirm the moves in the indices, but not as leading indicators.

Simply example - do you know how much AAPL weight in the NDX?

AAPL going up 1% can offset the bottom 50 weighting NDX components all going down 1%.
 
Quote from Lawrence Chan:

Those are outdated measures as they no longer represent the indices themselves.

At best they can confirm the moves in the indices, but not as leading indicators.

Simply example - do you know how much AAPL weight in the NDX?

AAPL going up 1% can offset the bottom 50 weighting NDX components all going down 1%.
More...

Here is some light with regards to S&P weights :

http://www.indexarb.com/indexComponentWtsSP500.html

For Nasdaq see here :

http://www.nasdaqtrader.com/Trader.aspx?id=IndexHoldings

The NASDAQ 100 index is structured as a hybrid between equal weighting and capitalization weighting. It is similar to a general market cap with one main difference: the largest stocks are capped to a percent of the weight of the total stock index and the excess weight will be redistributed equally amongst the stocks under that cap. Unfortunately, due to changes in stock prices, constant updating for the NASDAQ 100 is required. The market capitalization for each stock used in the calculation of the index is redefined so that each index constituent has an equal weight in the index at each re-balancing date.
 
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