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Industry Group Analysis FAQs
How exactly is the index calculated?
The index is market capitalization weighted and repositioned on a daily basis. For example, assume an index contains only two components; company A and B. At end of
day D1, company A has FA1 number of float shares (common stock shares outstanding) with a close price of PA1, and company B has FB1 number of float shares with a close price PB1. At the end of D1, we use the portion
PA1 * FA1 / (PA1 * FA1 + PB1 * FB1) of the total amount of the fund (i.e., the index close price at D1) to buy stocks from company A, and PB1 * FB1 / (PA1 * FA1 + PB1 * FB1) of the fund to buy stocks from company B. At the end of the next business day; day D2; the value of the fund is evaluated using PA2 and PB2 (close prices of A and B on D2) respectively. We will also recalculate the new percentage using the new prices PA2, PB2 and float data FA2 and FB2 for fund allocation on D2.
When do you update the data on your web site?
Calculation of indices is based on the daily close prices of the underlying stocks. The data update happens at 9 PM Eastern time on market opening days.
Is the data on weekly and monthly charts up-to-date?
Yes. The last node on a weekly or monthly chart contains data from the beginning of the week or month to the current day.
What are the technical analysis parameters used in your charts?
The graph shows 50-day simple MA in red and 200-day simple MA in green. The volume average uses 20-day simple MA. The RSI parameter is 14 days. The stochastic oscillator
uses 10 for %K, with 3 days slowing period (i.e., Slow stochastic,) and 3 for %D
using simple MA. The MACD shows difference of the 12 day exponential MA and the
26 day exponential MA in black, and 9 day exponential MA of it in red.
What is the "Normalized" index?
The analysis includes four market indices for comparison purpose – the Dow Jones Industrial Average, S & P 500 index, NASDAQ composite
index, and Russell 2000 index. Each of the market index value is adjusted by multiplying a factor so it has a
closing price of 100 at December 31, 1999, which is the same as all the industry group indices.
Do you publish indices based on other categorizations?
We have data calculated from US stock industry group based on SIC (Standard Industrial
Classification) and IBD (Investor's Business Daily) categories, as well as international stock indices categorized by different regions. We also produce indices using methods other than market cap weighted algorithm. These data are produced but not published. Please contact Timing Laboratories LLC for more information on obtaining these data.
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