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TW Patron++
Posts: 1,054
Reply with quote  #1 

There were a couple queries on the status of the small cap indices' internals, so with limited comments, here are a few charts.


The RUT AD MCO, still diverging with price.  A couple of comments concerning some of the extreme AD MCO postings over the past couple of months are on the chart.



The RUT AD line, still in a downward trend looking for a bottom.



The RUT $weighted UD volume MCO, still diverging for now.



The RUT $weighted UD volume line, this one's interesting.  For now, seeing a bit of a divergence with price.



The SML (SP 600) cumulative $weighted UD volume line.  Compare with the RUT cumulative $weighted UD volume line... appears the "blue chip" small caps aren't attracting as much money flow as the larger small cap universe.



The SML $weighted UD volume MCO, also diverging with price, continuing to say the internals momentum lows are in.



It may be premature to begin analyzing this next internals set, since this project is still in progress and only 9 months of data has been derived thus far, but the next two charts are the internals of the Russell MicroCap index components.  The definition of the index from the Russell website:


"Measures performance of the microcap segment, representing less than 3% of the U.S. equity market. The Russell Microcap Index includes the smallest 1,000 securities in the small-cap Russell 2000 Index plus the next 1,000 securities. As of the latest reconstitution, the average market capitalization was approximately $255.5 million; the median market capitalization was approximately $218.2 million. The largest company in the index had an approximate market capitalization of $612.1 million; the smallest company in the index has an approximate market capitalization of $67.3 million."


First, the Russell MicroCap cumulative $weighted UD volume line.  Like the SML $UD volume line, this variant is confirming price and is trying to hold at the December 2005 levels.



The Russell MicroCap cumulative AD line.  This AD line, at least thus far with limited data, appears to be similar to the NASDAQ.  There are many very thinly traded small caps in the Russell MicroCap index.



Upon completion of the Russell MicroCap component data collection exercise, a more in depth review of the index's internals will be addressed.






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Would you send me an email? On a new computer and don't have your email address.




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Many thanks for the updated info. It was very helpful and timely, indeed.



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