Advancing Issues over Declining Issues all divided by Advancing Volume over Declining Volume. That's the formula. What does it mean? Meh.
It's an index that is in theory a representative equation for how strong or weak the market is. The notion runs that when there is heavy volume, 'smart' buyers are putting lots of money into the system. So if you see a big up day with tons of volume, it signals, in theory, that "new money" is entering the market...i.e. cash that was sitting in money market accounts and mattresses by people who perceived more risk than reward in the marketplace have found a shift and decided to get invested.
Does it work? Is it real? Eih. Sorta. Sometimes. Kinda.
Related or Semi-related Video
Finance: What is Alpha?11 Views
Finance allah shmoop what is alfa All right well you've
heard of the alfa dog the alfa male an alfa
bet soup investing alfa is good when you have a
lot of it If your index iii the set of
investment returns numbers you were being measured against was saying
the s and p five hundred and it went up
eleven percent last year and you ve a trading or
investing in stocks and maybe options and whatever other vehicles
you deployed like dead and you know leverage and you
were on lee up eight percent last year Well then
you had low alfa sorry just keeping it real You
actually destroyed value after all your hard work from that
year you could have done nothing I he just let
your money sick and an s and p five hundred
index fund played golf all day and night If you
you know had those glow in the dark ball thing
is and you would have done three hundred basis points
better than you did trying teo you know outsmart mr
market So hi alfa Good low alfa bad unlike your
depressing golf score ask sophie if you need some help 00:01:09.415 --> [endTime] Home
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