Thread FULL - U.S. Stock Market - Use New Thread!
- DennisL
- Happy
- litab16
- DennisL
- RandeS
- DennisL
- DennisL
- JenL_3
- litab16
- TONYBRIG
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» DennisL - Russell 2000 vs. S & P Indexes
Can we have a general stock market discussion/Q & A thread, free of discussion about specific stocks, specific trades, and rehashes of Brinker's interpretations? I would like to start it with a question about indexes that I have been wondering about for a long time. If this thread dies, so be it. Here goes...When discussing small cap stocks, the pundits, reporters, and commentators always point to the Russell 2000 index. S & P also has two small stock indexes: a 400 mid cap and a 600 small cap. I notice that on many days, the Russell does not move in lockstep with the two S & Ps. I have seen days where the Russell is up and one or both of the S & Ps are down, or vice versa.
Intuitively, it doesn't make any sense for them not to move in lockstep with each other because they are all smaller cap stock indexes.
What are the differences between the Russell and the two S & Ps? Are the Russell stocks even smaller cap than the S & P stocks? Is the Russell 2000 comprised of the 1,000 S & P stocks, plus 1,000 other stocks? Are they weighted differently?
Finally, why don't the pundits ever talk about the 400 and the 600? They always talk about the 500 index. It's the same organization - Standard and Poors.
-- posted by DennisL
» Happy - indexes
There can be large differences between the Russell 2000 and the sp400 etc. because statistically if you have a universe of 5000 stocks, a sample of only 400 or 600 could vary significantly.Especially, true on a given day. Over a 1 year period probably not as much difference.
Good luck with the new thread.
-- posted by Happy
» DennisL - NYSE Composite
On the Yahoo! Major U.S. Indices quote page, there is an entry called New York Stock Exchange Composite. One would infer from its name that the Composite is some gauge of the whole NYSE and attempts to measure the performance of the whole U.S. stock market. Is this true? Is the composite as broad a gauge of the whole U.S. market as the Wilshire 5000? As is the case with the S&P 400 Mid Cap and 600 Small Cap indexes vs. the Russell 2000 for gauging small cap America, I don't hear many financial reporters mention the NYSE Composite when they talk about the performance of the entire market.-- posted by DennisL
» RandeS - For great info on NYSE Composite, check out “You And The Investm
For great info on NYSE Composite, check out “You And The Investment World” at”
http://www.nyse.com/public/search/07ix.h...
Here’s an excerpt:
The New York Stock Exchange Composite Index is an average of the price changes of all the common stocks listed and traded on the New York Stock Exchange. It is expressed in index points relating the current index value to a base index value. (The base for the NYSE Composite Index was set at 50.00 on December 31, 1965.) In calculating the index, the price of each stock is multiplied by the number of shares in the hands of the public. As a result, corporations with the most shares will have a greater effect on the index.
The NYSE Composite Index is the only major measure that reflects the whole NYSE market. In addition to being recorded in newspapers, it is computed continuously after every transaction and transmitted electronically to the Trading Floor and brokerage houses every 15 seconds. Other major market indicators include the Standard and Poor's Indexes, NASDAQ Index, Amex Index, Value-Line, Russell Indexes and Wilshire 5000.
BTW, NAS/Amex and Russell have great sites as well that detail the workings of their indices.
-- posted by RandeS
» DennisL - After Hours Trading for Everyone
I saw a report on CNN Moneyline tonight saying that the NYSE is very seriously considering initiating an evening trading session open to everyone. It could begin as early as July.Do you think this is a good idea?
I think yes because it would give people more access at a time of the day more convenient for many of them.
I think no because it would give the gunslingers and day traders several more hours each day to gamble, thereby possibly giving the stock market even more of an aura of being nothing more than a gigantic casino.
-- posted by DennisL
» litab16 - 24-hour trading
Jen,24-hour trading could ease the volatility of the stock market because there would not be the morning rush to act on overnight news or the evening rush to act on late afternoon rumors about expected overnight news. This would create an entirely different playing field for day traders and change all current rules of the game.
-- posted by litab16
» TONYBRIG - Stabilization Factor
a 24 hr market would be the best (in time)One wouldnt have to rush.
One could consider more.
The Day Traders would become more SANE so to speak.
More education too.
Insiders would not be as much.
Market therefore would stabilize.
So much hype would cause many who aren't in the
Market to be so.
May cut into other forms of GAMBLING.
But in time would be great for the MASSES.
I'LL BET ON IT!!
VBOLHH
-- posted by TONYBRIG
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