Cumulative vs. Invisible with Moving Average

primeracosta

Hi,
$NAUD is set as cumulative and and when compared to $SPX shows upward movement with ranging price movement in the SPX since March 2 till April 24 2015. This may bring about a certain interpretation conclussions for me.

But when $NAUD is set as Invisible, and only the Moving Averages are displayed in the main window, the picture becomes somewhat different. Very different. Interpretation of those MAs will point to opposite conclusions, at least in my head.

Is there a way to avoid such ambiguity by using the right settings for $NAUD?

primeracosta

markd

I wonder if you could clarify your set up to the question.

What do you mean by "$NAUD is set as cumulative"? How do you put that on the chart? Maybe you could upload a link to the chart or an image and explain more about what the settings are.

Also, what is the reason for comparing Nasdaq up-down volume to the $SPX? These are two different markets.

primeracosta

I am so angry that you do not understand my question.

On the chart choose $NYUD, then choose type "cumulative". Did not I write that in my previous post?

Second, i thought that SPX companies are traded on NASDAQ and NYSE, are they not?

Primeracosta

Kevo

1. Cumulative is the correct chart type for $NAUD.

2. Components of $SPX are found in both the NYSE and NASDAQ.

3. $NAUD measures exchange breath. $SPX measures a market cap weighted basket of 500 large cap stocks.

4. Moving Averages (especially longer-term) are used for confirmation of trend.

5. $NAUD is Net Advances for all stocks on the NASDAQ. Since there are more small cap stocks than large cap stocks on the NASDAQ, the way to interpret $NAUD is to think in terms of non-large caps. $NAUD has been trending down for the past 10 years. So, longer-term MAs would be pointing down. This is now changing for the first time since the NASDAQ is surpassing the 5000 mark.

6. It is not a good idea to make direct comparisons of $SPX vs $NAUD.

7. If you want to measure the breath of $SPX, use $BPSPX, $SPXADP, $SPXA50R, etc.


Do you have to be angry? You can also learn these things on your own.

Kevo

Also, the NASDAQ has a lot of high beta stocks. These stocks put downward pressure on $NAUD due to going out of business and M&A activity.

markd

Hi @primeracosta , sorry I didn't understand your question right off. I don't use the cumulative chart style, so it didn't occur to me that's what you meant. The word cumulative just drew a blank because it has a lot of different meanings in different contexts.

Also, I'm sorry I was not precise with my language. The SP500 is not a market in the same way the Nasdaq is a market. The Nasdaq is an exchange, the SP500 is an index.

But what I couldn't guess was why you would want to use a Nasdaq indicator to judge the SP500, because they are so different. That's not a criticism - different ideas can be really useful. I just wanted to understand what you were getting at because nearly all SP500 stocks are large caps (some are mid cap when they lose value) and span all sectors, while the majority of Nasdaq stocks, with a few notable exceptions, are small to mid cap stocks and mostly technology-related.

So I hope you are no longer angry with me. I spend time here both to learn and to help when I can, not to get people upset.