|
|
Introduction to Breadth Data
|
|
Stock composites
are nothing new. Stock market
indexes are composites. More recently,
a new type of composite, the Exchange
Traded Fund (ETF), began trading and
continues to grow rapidly in both importance
and trade volume. Along with
Exhange Traded Notes (a debt
instrument also referred to as an
ETN) these are collectively called
Excange Traded Produtcts (ETPs). ETFs offer the
ability to trade industry groups and
sectors as well as mirroring indexes
(i.e. the SPY ETF is generally
equivalent to trading the S&P 500 Index).
The following provides an overview of
equity composites and the concepts and
methods of analyzing the individual
issues (components or constituents)
that make up the composite.
Such composite breadth data provides
better understanding of and, perhaps,
a better chance of taking advantage
of price
movements in the composite itself.
Addendum: As
the ETP evolves ETFs based upon a
fixed group of equities such as an
index are no referred to as
Passive ETFs. A newer
type of ETF that ismanaged to
enhance profitability is referred to
as an Active ETF.
|
|
Composite: |
|
|
Any grouping
of a specified list of securities.
Most indexes and Exchange Traded Funds
(ETFs) are composites. For example,
the S&P 500 Index is a composite of
500 stocks traded on various U.S. exchanges.
Another example is the Semiconductor
HOLDRS (SMH), an ETF, made up of 20
stocks. Generally, composites
are groupings of stocks with some common
thread such as an industry group or
sector or constructed to reflect a particular
market segment. Certain ETFs duplicate
the components of an index (for example,
the ETF, SPY, generally has the same component
list as S&P 500 Index - .SPX).
Some indexes
and ETFs have no components, such as
the 30 Year Treasury Yield Index (.TYX)
or the StreetTracks Gold Shares (GLD).
Currently, the MasterDATA web site
can
not provide holdings lists for indexes
and/or ETFs without
components, but only for indexes and
ETFs comprised of equity and fixed
income securities.
|
For
a list of MasterDATA's followed
indexes and ETFs (composites),
click
here. |
|
|
Passive Exchange
Traded Funds:
|
|
|
A
passive Exchange
Traded Fund (ETF) generally reflects
an index. ETFs are listed on an exchange
and can be traded intraday like any
oter stock. Investors
can buy or sell shares in the collective
performance of an entire stock or bond
portfolio as a single security.
Exchange traded funds add the flexibility,
ease and liquidity of stock trading
to the benefits of traditional index
fund investing.
|
For
a downloadable list of all
current Exchange Traded
Funds,
click
here.
|
|
|
Active Exchange
Traded Funds:
|
|
|
An active Exchange Traded Fund is actively
traded not adhering to any
particular index or list of issues.
The fund manager has a free hand to
trade as he sees fit following his
own trading strategy. Often
the objective of this type of ETF
will be to represent an industry
group, sector, or type of investment
or investor.
|
For
a downloadable list of all
current Exchange Traded
Funds,
click
here.
|
|
|
|
|
|
|
|
For the donloadable Kindle version
(much less expensve), click
here or the image in the left column.
|
|
|
Expert guidance to help
you use market breadth indicators in your investments.
Capsule descriptions of more than 80 leading
breadth indicators--what they are, what they
mean, and when and how to use each!
|
|
| "This
book should be called the Encyclopedia of Market
Breadth because it includes every form of market
breadth known to man. A must for any serious
student of this important and overlooked subject." |
|
|
--Martin
Pring, Author,
Technical Analysis Explained
|
|
|
|
Component
/ Constituent / Holding: |
|
|
The individual
issues making up a composite are components.
For example, Intel (INTC) is a component of
the Dow Jones Industrial Average. INTC
is also a component of the Semiconductor HOLDRS
(SMH). A particular issue may be a component
of any number of indexes and ETFs.
|
|
|
For
a list of all stock issues
included in MasterDATA's
Compilation List of followed
indexes and ETFs,
click
here.
|
|
|
Component /
Constituent Data |
|
|
Statistical information
compiled on the individual issues within an
index or ETF. Examples of component data
include trade volume, net change, whether or
not the issue is in an uptrend or above its
200 day moving average, etc.
|
|
Breadth Data / Internals: |
|
|
An accumulation
of all similar component data calculated on
each component issue within an index or ETF.
For example, if 230 issues within the S&P 500
Index increased in price for the day, the advancing
issues statistic for the day is 230. When
the volume for each of these advancing components
is totaled, the composite statistic is "advancing
volume".
|
For the list
of breadth data currently compiled
by MasterDATA,
click here.
|
|
|
Composite breadth Indicators: |
|
|
Built upon composite
data, composite indicators are tools for analyzing
the price movement of composites. Well
known composite indicators include the McClellan
indicators, Arms Index, Advance-Decline Line
and many more. Traditionally, such composite
data has only been available reflecting the
major exchanges such as the NYSE, AMEX and NASDAQ.
These same highly regarded composite indicators
can now be applied to specific indexes and ETFs
using the historical datafiles available on
this web site.
|
For a list
of well known composite indicators,
click here.
|
|
|
New Breadth Indicators: |
|
|
Creating new composite data
and using it in new composite indicators is
subject only to imagination. Perhaps,
the easiest place to begin is with existing
well known technical analysis indicators generally
used to analyze individual securities.
One example could be the total number of components
within an index or ETF with a Relative Strength
Index (RSI) over 70. Variations might
be how many component RSI's were recently
above 70 and now are below it or, simply, the
number of components with rising RSI's.
The same concept can be applied with any other
technical analysis indicator on individual issues.
The development of composite
breadth data analysis is one of the ongoing
endeavors of MasterDATA in our quest to trade
more effectively. When we find a new composite
statistic of merit, it will be added to our
web site historical datafiles of composite data
as well as charts and reports.
|
For a list
of well known technical indicators
on individual issues,
click here.
|
|
|
|
MasterDATA's breadth
data and indicators can be viewed in up to date
daily reports and charts or downloaded for use
in your own charting software and calculations.
Click on one of the following links for additional
information:
|
|
| |
|
|
|
