MasterDATA's Composite Plug-in for
MetaStock
and historical composite breadth datafiles on 30
major stock indexes and the 111 highest trade volume
ETFs.
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 continue
to grow rapidly in both importance and trade volume.
ETFs offer the ability to trade industry groups and sectors
as well as mirroring indexes (i.e. the SPY ETF is virtually
equivalent to trading the S&P 500 Index). The
following provides an overview of stock 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 anticipating price
movements in the composite itself.
Some
Definitions:
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, 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 will not focus on indexes or ETFs without
components, but specifically with indexes and ETFs that are true
composites.
For a
list of MasterDATA's followed indexes and ETFs (composites),
click here.
Exchange
Traded Funds:
Exchange Traded
Funds (ETFs) are index funds or trusts that are listed on an
exchange and can be traded intraday. 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.
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!
Click here for details
"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."
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 numerous indexes and ETFs.
On the MasterDATA
web site, links to brief statistical reports are provided on each
component within the various index and ETF reports. This
report also lists each composite followed by MasterDATA to which the
component stock belongs with a link to the composite charts and
report. For instance at the bottom of the Intel report, is a
list of the composites that it is a component of as follows:
The above links lead to our Subscriber
Section. Subscribers will need to log in for current
charts and reports (updated hourly throughout the trade
session). Non-subscribers can sign up for a free
subscription, by
clicking here.
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.
composite breadth Data:
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 composite 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
composite 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 composite 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:
Disclaimer: This material is for your private
information. We are not soliciting any action based upon
it. Opinions expressed are present opinions only. The
material is based upon information considered reliable,
but we do not represent that is accurate or complete,
and it should not be relied upon as such. We, or persons
involved in the preparation or issuance of this material
may, from time to time, have long or short positions in,
and buy or sell the securities or options of companies
mentioned herein.
