Inside the XOI Index
AMEX's Oil Service index
Below is a daily Japanese candlestick chart of the XOI index with its raw sequential volume. In addition, the 4 day simple moving average is plotted. The raw sequential volume is simply the daily sum of each components trading volume. The reason this volume figure is plotted is due to the fact that the XOI index is a simple price weighted index. This index is calculated by summing the prices of its components and dividing it by a divisor. Company size or market capitalization isn't a factor, which means that the volume is a simple total. Each company's trading volume has equal weight.
Below is a plot of the XOI's weighted volume. The raw volume is adjusted to each component's daily index weighting.
Below is a chart that converts the XOI index's daily volume into a relative measure of extremeness. We are coining the phrase "Z Volume" as the moving monthly sum of the daily z-scores based on the volatility of the last quarter. This means that the peaks represent the same level of extremeness and each peak can be compared to any of the others. Notice how prices are rising despite the decreasing intensity of trading volume during Aug - Oct 2003.
Below is a chart that shows you the internal strength of the component issues that comprise the XOI index. There are currently 13 stocks in the index and if 7 out of 13 close higher today then the McClellan Oscillator rises. Note that if 6 or 7 stocks rise, the oscillator is neutral since the net number of advancing issues is zero (6 up: 7 down).
Below is the Summation index for the XOI index which is a cumulative total of the McClellan Oscillator.
Below the daily percent changes for the XOI index are summed. The moving sum of the most recent 7 days is totaled which creates an price movement oscillator.
created 12/22/05
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